Reasons to Invest

Investments made by Qualified Opportunity Funds into certified Opportunity Zones can receive the following three key federal tax incentives designed to encourage investment in low-income communities, subject to applicable federal requirements:

1. Deferral: Opportunity Zones investors may defer taxes on capital gains that are reinvested in a Qualified Opportunity Fund for up to five years.
2. Basis step-up: After the deferral, Opportunity Zone investors receive a 10 percent reduction (or step-up in basis) on their deferred capital gains tax liability. This increases to 30 percent for rural investments.
3. Tax-free growth: Gains on investments in Qualified Opportunity Funds held for 10 years or longer are exempt from federal capital gains tax.
   

Indiana’s competitive tax climate, efficient permitting environment, infrastructure assets, and diversified economy position the state well to leverage these tax benefits and attract Opportunity Zone investment.