The City of Richmond has two census tracts and a portion of a third census tract granted as Opportunity Zones by California's Governor as Opportunity Zones.
1. Census tract: 376000 - Central Richmond
2. Census tract: 365002 - Spans both the City of Richmond and Unincorporated North Richmond
3. Census tract: 382000 - A portion of the census tract is in the City of Richmond
DISCLAIMER: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
The Tax Cuts and Jobs Act passed at the end of December 2017 created a new program called, Opportunity Zones. The Opportunity Zone program was enacted to spur economic development by providing tax benefits to investors encouraging long-term private sector investments in low-income communities.
The IRS states that "Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged."
Governors are responsible for designating census tracts as Opportunity Zones in their state. The U.S. Department of the Treasury has certified California's nominated eligible census tracts and has designated all 879 nominated tracts as Qualified Opportunity Zones under Internal Revenue Code (IRC) Section 1400Z-1(b)(1)(B).