The Qualified Opportunity Zones program was an element of the 2017 Tax Reform and Jobs Act designed to provide Americans who have capital gains built into assets they own some incentive to sell those assets and put their gains to work on economic development projects in the QOZs — low-income areas designated as in need of new development. There are presently more than $6 trillion in capital gains sitting on the sidelines in America. These gains are essentially trapped in the assets: The owners will not sell the assets because they do not want to pay tax on the gains.

By: Coni Rathbone and Jonathan McGuire