Here are state OZ actions to date:
- Zones Designated: The Governor needed to designate up to 25 percent of census tracts that either have poverty rates of at least 20 percent or median family incomes of no more than 80 percent of statewide or metropolitan area family income as Opportunity Zones by April 30, 2018. The state designated our zones in line with the state’s sustainability and equity vision and the US Treasury Department has certified these selections. Investments made by qualified Opportunity Funds through special funds in these designated zones will be allowed to defer or eliminate federal taxes on capital gains, once the IRS issues final rules later this year. Learn more here.
- Inter-Agency Workgroup Created: The Governor’s office has created an inter-agency workgroup to begin to work with communities and stakeholders to identify early investment opportunities and challenges in preparation for Opportunity Funds coming on the scene later this year and to facilitate equitable and sustainable development using the OZ tool, if possible. Learn more here.
- Partner and Community Engagement: The state workgroup team has already begun to engage with and participate in OZ meetings around the state, working with a range of partners including the SF Federal Reserve Bank, California Forward, Accelerator for America, Enterprise Community Partners, and community foundations.
- Investor Engagement: With over 10% of the nation’s OZs, California’s OZ team is in discussions with a number of investor groups and OZ Funds in early stages of formation and will be attending a couple of investor led events this summer. Responses so far from our meetings have been extremely positive, due to the state’s clear focus on encouraging co-investment alongside our local community sustainability.
- Web Portal: Our new web portal (OpZones.Ca.Gov) will serve as the hub for state action and tools for communities, partners and investors. We welcome suggestions and contributions: Web Portal.
- Policy Inventory: Besides addressing community gentrification concerns, a key work stream that we have identified involves the need for state agencies and communities to identify, strengthen and preserve those state and federal programs that can serve effectively as OZ co-investment tools. Let us know about programs of interest and concern: Policy Inventory.
For more information, check out our Opportunity Zone FAQs.