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OPPORTUNITY ZONE INVESTMENT

Eternel Hemp's business & building are located in an Opportunity Zone (OZ) providing significant tax savings on capital gains. An investors who have triggered a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they roll that gains into a Qualified Opportunity Fund  (QOF) within 180 days.

About Opportunity Zones

  • New investment vehicle created as part of the Tax Cuts and Jobs Act of 2017

  • Created to incentivize investment in targeted low-income urban and rural communities

  • Designated by state and federal governments to provide long-term economic investment and development

  • Temporary deferral of gain by investing in a QOF until the earlier of the disposition of the investment or December 31, 2026. 

  • Step-up in investment of the gain. Ten percent of the gain may be excluded permanently if the investment is held for five years. An incremental 5 percent (total of 15 percent) may be excluded if held for seven years. Both holding periods are through December 31, 2026. 

  • The entire gain from sale of the "interest in" the QOF may be permanently excluded if the investment is held for at least 10 years. The exclusion of this gain relates only to the value increase in the investment in the QOF. 

  • Various state and local project incentives and support may also provide added value that could offset as much as 10 to 15 percent of project costs.