Comstock's magazine 0519 - May 2019 - Page 89

Special Supplement The Railyards, next to downtown Sacramento, is a designated “opportunity zone,” meaning those who purchase real estate there could have their capital gains taxes deferred or eliminated. Enticing Investment Opportunity zones are attracting investment in lower-income areas of Sacramento to help revitalize communities by Jennifer von Geldern A relatively new tool is drawing investors to economically distressed communities in Sacramento. “Opportunity zones,” enacted as part of the federal Tax Cuts and Jobs Act of 2017, gives investors incentives to bring business and development projects to designated low-income areas by eliminating or deferring capital gains taxes. It’s made to be a win-win — for investors and for the communities by injecting economic life into those neighborhoods. In California, there are 879 opportunity zones, which are rural or urban census tracts (neighborhoods) of low-income or lack-of-business-activity areas. Sacramento County has 43 opportunity zones, and the city of Sacramento has 29 spread throughout downtown, older commercial quarters, development areas like The Railyards, and industrial areas like Power Inn. May 2019 | 89