TRF Opportunity Zones

Opportunity Funds are a new class of private sector investment vehicles authorized to aggregate and deploy private investment into Opportunity Zones. Advance Thief River Director, Michelle Landsverk, is enthusiastic about the program, describing it as a “once in a lifetime opportunity.”

Opportunity Funds allow U.S. investors holding unrealized gains in stocks and mutual funds to pool their resources in projects located in Opportunity Zones, which will be invested in rebuilding low-income communities.

Opportunity Funds pool investments in Opportunity Zones

 

TRF investors are eligible to receive:

  • A temporary tax deferral for capital gains invested in an Opportunity Fund.
  • A step-up in basis for capital gains reinvested in an Opportunity Fund.
  • A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund if the investment is held for at least 10 years.

What makes a good project?

There are many types of projects that can be eligible Opportunity Zone projects. The primary requirement is that the project must be within a certified Opportunity Zone. In Thief River Falls, there are two Census tracts that have been designated as Opportunity Zones: 27113090200 and 27113090400 (see map on this page). Project types can be either new construction on empty land within an Opportunity Zone, or significant rehabilitation (either residential or commercial) of an existing building within an Opportunity Zone.  The cost of the rehabilitation must be equal to or greater than the purchase price of the building.

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