The West End Opportunity Zone, which consists of two census tracts, is a portion of the City where new investments, under certain conditions, may be eligible for preferential tax treatment.

The program, which is the result of legislation passed by Congress in December 2017, is designed to incentivize patient capital investments in the area, thereby encouraging revitalization. The underlying incentives relate to the tax treatment of capital gains, and all are tied to the longevity of an investor’s stake in a qualified Opportunity Fund, providing the most upside to those who hold their investment for 10 years or more.

An Opportunity Fund is an investment fund, organized as a corporation or partnership, which invests in property in the Opportunity Zone. Some Opportunity Funds may be created for a specific project, such as a large apartment building, while other Opportunity Funds may be more like mutual funds, where there is a large range of investments that evolve over time.

An investor can realize substantial tax savings through the program. An investor who has triggered a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they roll that gain into an Opportunity Fund within 180 days.

 A qualified Opportunity Fund is a partnership or corporation designed to invest at least 90% of capital held into Opportunity Zone projects. Individual investors can start their own fund or join an existing one to support OZ projects. Additional information funds and investors can be found at the following links:

• Virginia Department of Housing and Community Development
•  Information from the Council of Development Finance Agencies (CDFA) 
• National Council of State Housing Agencies (NCSHA) Opportunity Zone Fund Directory
  

The U.S. Department of the Treasury and the Internal Revenue Service are finalizing regulations for this new program. Additional information on the tax benefits for investing in the West End Opportunity Zone can be found at the following links:

• IRS Proposed Regulations
• IRS FAQ’s
• Richmond Federal Reserve
• CDFI Fund
  
  

It’s easy to locate your property to see if it’s in the Opportunity Zone or other incentivized zones, such as the Enterprise Zone. Visit StauntonBusiness.com and search for your address or buildings and sites for investment.

Staunton’s Interactive Map provides users with the ability to view and interact with various GIS map layers.

The City of Staunton’s land-use policies encourage neighborhood development and redevelopment, making the city a national model of growth balanced with preservation.

• Vision 2030 and 3-Year Priorities
• Comprehensive Plan 2018-2040
•  Capital Investment Plan FY 2019-2023