Frequently
Asked Questions

• Who creates or administers Qualified Opportunity Funds?

  Qualified Opportunity Funds may be created/organized by a corporation or a partnership for the purpose of investing in Qualified Opportunity Zone Property (other than another Qualified Opportunity Fund) that holds at least 90% of its assets in Qualified Opportunity Zone Property. Qualified Opportunity Funds may be closely held or professionally managed.

• How many Federal Qualified Opportunity Zones are in Georgia?

  260 Georgia census tracts have been designated by The U.S. Department of Treasury as Federal Qualified Opportunity Zones.

• What criteria was used to make the determination?

  Poverty and income criteria were used to determine eligibility of census tracts. Those with some of the highest poverty levels in the state were recommended to the U.S. Department of Treasury for designation.

• Is Georgia’s Opportunity Zone program the same as the Federal Qualified Opportunity Zone program?

  No. The Federal Qualified Opportunity Zone program provides capital gains tax credits to those who invest in Opportunity Funds. These monies must be reinvested in business ventures or real estate within designated Federal Qualified Opportunity Zones. Georgia’s Opportunity Zone program is a redevelopment tool of the Job Tax Credit program, which provides job tax credits to eligible businesses that locate within the state’s designated opportunity zones.

• Have the rules and regulations been adopted for the Federal Qualified Opportunity Zone program?

  On October 19, 2018, The U.S. Treasury and Internal Revenue Service issued proposed regulations and other published guidance for the Opportunity Zone tax incentive. They also released Form 8996, which investment vehicles will use to self-certify as Qualified Opportunity Funds. 

• What benefits are available to businesses within a designated Federal Qualified Opportunity Zone?

  Businesses located within a Federal Qualified Opportunity Zone may seek tax-advantaged investment from a Qualified Opportunity Fund. The business is the beneficiary of investment capital; the investor benefits from the savings and investment return.

• What is a Qualified Opportunity Fund?

  A Qualified Opportunity Fund is an economic tool through which individuals with unrealized capital gains can achieve tax savings by investing in the fund. Subsequently, Qualified Opportunity Funds must invest at least 90% of their funds within Federal Qualified Opportunity Zones.

• What role will the Department of Community Affairs (DCA) have in the Federal Qualified Opportunity Zone process?

  This is a federal program administered by the U.S. Department of Treasury. DCA and the Department of Economic Development are committed to providing education and current information to help Georgia’s communities attract investments and take full advantage of the federal program. Local communities will promote their Federal Qualified Opportunity Zones to Qualified Opportunity Funds in order to secure investments and bring additional economic development to local businesses and families.