Right now, investors all across the United States are in a flurry of activity, looking over every square-mile of property in an effort to spur prosperity and economic development. If investing in and developing property is your passion, here is everything you need to know about Opportunity Zones in North Dakota.
What is an Opportunity Zone?
Opportunity Zones are specially designated areas within the United States where companies can receive lucrative tax incentives by investing.
The “Qualified Opportunity Zone” program was created by the Tax Cuts and Jobs Act of 2017 and designed to spur investment activity in economically struggling parts of the country.
How Does an Opportunity Zone Work?
The areas which get defined as opportunity zones are first decided upon by the state government, who then send their choices to the IRS and Secretary of the Treasury for final approval.
By supporting these communities through specially designed “Qualified Opportunity Funds”, investors gain several tax benefits, with the most immediate benefit being the deferral of any tax payments to 2026.
Depending on how long an investor maintains ownership of their investment, they may gain other special tax benefits: if they maintain them for 5 years, 10% of the tax is forgiven; for 7 years, 15% is forgiven; and if an investor maintains their investment for 10 years, then all of the taxes on that investment are forgiven.
What Opportunity Zones Are Available in North Dakota?
North Dakota currently has 25 Opportunity Zones, with 13 of those tracts being in urban environments, while 11 are in rural areas. The largest focus of Opportunity Zones is in Fargo, where 5 tracts of city land have been given this important investment status.
More than 81,000 North Dakotans live in these zones and an additional 109,000 jobs can be found within them, meaning that these territories are developed enough to provide a stable investment future for any new businesses or projects that investors may be planning.
Lexstar Construction & Commercial Real Estate has more than 10 years of experience building and selling the best properties in the Midwest, and we want to help you with your next project. Give our property investment experts a call today at 701-492-6123 or visit us online and see how we can make your investment dreams come true.