The Tax Cuts and Jobs Act of 2017 contains a new tax incentive for investments in low-income census tracts designated as Opportunity Zones.
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act to encourage long-term investments in low-income urban and rural communities. Private investment vehicles that place 90 percent or more of their funds into an Opportunity Zone can earn tax relief on the capital gains generated through those investments. Tax benefits increase the longer investments are in place.
The Tax Cuts and Jobs Act of 2017 provides a unique opportunity for Governors across the country to nominate certain eligible census tracts as Opportunity Zones. Opportunity Zones are low-income census tracts where the poverty rate is 20 percent or greater and/or family income is less than 80 percent of the area’s median income.
Each state may nominate a minimum of 25 total eligible census tracts but no more than 25% of the total number of eligible census tracts within the state. When finalized, the U.S. Department of the Treasury will approve the nominated census tracts and administer the Opportunity Zone Program. Below are the Idaho tracts submitted for nomination:
| Applicant Name | County | Census Tract | Type |
| City of Boise | Ada | 16001002000 | LIC |
| Meridian | Ada | 16001010321 | LIC |
| New Meadows | Adams | 16003950100 | CONTIGUOUS |
| Pocatello | Bannock | 16005001601 | LIC |
| Benewah County | Benewah | 16009950100 | LIC |
| Bonner County | Bonner | 16017950300 | LIC |
| Boundary County | Boundary | 16021970200 | LIC |
| Canyon County | Canyon | 16027022200 | LIC |
| Nampa | Canyon | 16027020200 | LIC |
| Canyon County | Canyon | 16027022100 | LIC |
| Clearwater County | Clearwater | 16035970100 | LIC |
| Nez Perce Tribe | Clearwater | 16035940000 | CONTIGUOUS |
| Mountain Home | Elmore | 16039960300 | LIC |
| Gooding | Gooding | 16047960100 | LIC |
| Kooskia | Idaho | 16049940000 | LIC |
| Riggins | Idaho | 16049960400 | LIC |
| Jerome | Jerome | 16053970400 | LIC |
| Post Falls | Kootenai | 16055000602 | LIC |
| Moscow | Latah | 16057005400 | LIC |
| Moscow | Latah | 16057005100 | LIC |
| Kamiah | Lewis | 16061940001 | LIC |
| Rupert | Minidoka | 16067970500 | LIC |
| Lewiston | Nez Perce | 16069960300 | LIC |
| Payette | Payette | 16075960200 | LIC |
| Shoshone County | Shoshone | 16079960300 | LIC |
| Buhl | Twin Falls | 16083000400 | LIC |
| Twin Falls | Twin Falls | 16083001100 | LIC |
| Valley County | Valley | 16085970300 | LIC |
On Wednesday, October 10, 2018, Idaho Commerce, in partnership with Craig Nolte from the Federal Reserve Bank of San Francisco, hosted an Opportunity Zones Forum. The forum discussed the Opportunity Zones Program and the Opportunity Zones located throughout Idaho. Additionally, participants discussed the investment process, shared views on Idaho’s designated Opportunity Zones, discussed potential investment opportunities, and heard perspectives from local leaders.
Handouts from the event can be downloaded here and here.
For more information from the official U.S. Federal Government Opportunity Zone map, click here.
DISCLAIMER: The U.S. Department of the Treasury has not completed its rulemaking on the Opportunity Zone program. At this time the Department of Commerce is collecting applications for qualifying census zone tracts to be designated an Opportunity Zone. Selection criteria will be determined upon publication the U.S. Department of Treasury rules. All communications, maps and applications provided by the Idaho Department of Commerce are for planning purposes only and may be subject to change based upon the Department of the Treasury’s final rule.