Created as part of the Tax Cuts and Jobs Act of 2017, Opportunity Zones (OZ) are a federal tax program designed to encourage investors to reinvest capital gains in economically distressed communities, thereby stimulating economic development and job creation. There are eight federally designated Opportunity Zones in the Pikes Peak region. Investors will be able to defer, reduce, and potentially eliminate certain federal capital gains taxes by investing their capital gains into Qualified Opportunity Funds.

Deferral

No up-front tax bill on the rolled-over capital gain and investors can defer their original tax bill until the earlier of a) December 31, 2026, or b) the sale of the Opportunity Zone investment.

Reduction

Reduction of tax on the rolled-over capital gain investment for long-term holding. A 5-year holding increases the rolled-over capital gains basis by 10%, and a 7-year holding increases the rolled-over capital gain investment basis 5%, for a total of 15%.

Tax-Free Appreciation

If an Opportunity Fund investment is held for ten years, the taxpayer pays no capital gains tax on the appreciation.

Federal Opportunity Zones Map
Federal Opportunity Zones Map
Find a Location in the OZ Map

In the mapping tool, select “opportunity zones” under “map layers.”

Resources

IRS Opportunity Zones FAQS

Colorado Office of Economic Development and International Trade Colorado Opportunity Zone Program

El Paso County Assessor’s My Community Opportunity Zones Mapping Tool – must select “opportunity zones” under “map layers”

Contact Us

Crystal LaTier
Executive Director of Economic & Workforce Development
1675 W. Garden of the Gods Road
Colorado Springs, CO 80907
719-520-6484
crystallatier@elpasoco.com

Katie Plutz
Economic Development Analyst
1675 W. Garden of the Gods Road
Colorado Springs, CO 80907
719-520-7493
katieplutz@elpasoco.com