Harnessing the power of Opportunity Zones to transform Alabama
Opportunity Alabama (or OPAL) is a first-of-its-kind nonprofit initiative dedicated to connecting investors with investable assets in Alabama’s Opportunity Zones – 158 Census tracts chosen by Governor Kay Ivey as places that could benefit from a new influx of capital. OPAL will become the catalyst for bringing investors, opportunities, communities and key institutional supporters together to generate real returns while improving economic vitality and quality of life.
Understanding Opportunity Zones
Enacted as part of the tax reform package that was signed into law in December 2017, the Opportunity Zones program is a new tool that allows individuals and corporations to take capital gain incurred from the sale or exchange of property – appreciated stocks, buildings, family businesses, and more – and roll the gain into businesses or projects located within Opportunity Zones.
With that investment comes tax benefits:
01
Tax deferral on gains you roll into an Opportunity Fund (until 2026 at the latest).
02
Tax reduction (up to 15%) on gains rolled into your Opportunity Fund.
03
No tax on appreciation of your investment if you “cash out” of your Opportunity Fund after 10+ years.
Alabama’s 158 Opportunity Zones
Alabama has identified and selected 158 Opportunity Zones with each of our 67 counties having at least one designated zone. The selected zones were chosen objectively from 629 qualifying census tracts. The selected tracts average between 1,200 and 8,000 in population and vary in size from 199 acres to 235,352 acres.
91 tracts have an anchor institution like a university, hospital, airport or military base
82 tracts have easy access to an interstate exit
95 tracts have a downtown area or neighborhood commercial district
average population of an Opportunity Zone
average poverty rate of an Opportunity Zone
median family income of an Opportunity Zone