Opportunity Zones Aim to Stimulate Local Economies

A real estate professional in Portland, Oregon, Barclay Grayson manages a diverse portfolio as a senior vice president at BPM Real Estate Group. Active in the Portland real estate market for more than 15 years, Barclay Grayson maintains awareness of federal and state initiatives such as the Opportunity Zone program.

The 2017 Tax Cuts and Job Act created “opportunity zones” in a bid to encourage development in disadvantaged communities across the country. Opportunity zones were designated in distressed areas with the potential for improvement. The plan aimed to drive sustainable economic activity, attract new companies, and enhance communities by offering investors capital-gains tax breaks as a development incentive.

By selecting downtown Portland as an opportunity zone, the state allowed businesses or individuals who sold a capital asset with a gain and reinvested it into a qualified opportunity zone fund within 180 days to defer the gain. Investors qualify to receive a 10 percent discount on the deferred gain after five years, which increases to 15 percent after seven years.