Cleveland County Opportunity Zones
Cleveland County has 2 designated Opportunity Zones. One Zone is located in Kings Mountain encompassing all of the industrial area and interstate exchanges between I-85 and downtown. In Shelby the zone includes the east side of downtown including the court square.
What are Opportunity Zones?
The Tax Cuts and Jobs Act of 2017 grants significant tax benefits to investors who reinvest their capital gains in Opportunity Zone Funds which invests in eligible businesses and properties located in federally designated “Opportunity Zones.” An Opportunity Zone is an economically-distressed census tract where Opportunity Zone Funds may invest.
Where are the Opportunity Zones?
The U.S. Department of Treasury certified 252 census tracts* in North Carolina. Zoom into the map above to explore two census tracts in Catawba County and another census tract in adjacent Burke County which contains the Hickory Regional Airport.
(*Census tracts are small, statistical subdivisions of a county or similar entity created to help provide a stable set of geographic units for the presentation of statistical data.)
How are Opportunity Zones useful?
Investors with recently realized capital gains invest in local businesses, real estate, or development projects through Qualified Opportunity Funds (QOF)** in exchange for a reduction in their tax obligations. At least 90 percent of the QOF investments must be spent on an operating business, equipment, or real estate within an Opportunity Zone that double the value of the project within 180 days of the investment. The funds do not provide direct grants but could provide equity investments in vetted projects that show a significant return on investment.
(**A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property located in an Opportunity Zone. Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund until the earlier of the date on which the investment in a QOF is sold or exchanged, or Dec. 31, 2026.)
How can I find more information about Opportunity Zones?
Several partners and government agencies have additional information related to Opportunity Zones. Those agencies include:
- Internal Revenue Service: Opportunity Zones frequently asked questions
- North Carolina Department of Commerce: North Carolina Opportunity Zones Program
- S. Department of Housing and Urban Development: The White House Opportunity and Revitalization Council
- Economic Innovation Group: Opportunity Zones general information
Opportunity Zone Fund Directories: