top of page

Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

Opportunity Zones: A Positive Impact for Communities and Investors

Opportunity Zones: A Positive Impact for Communities and Investors

Investors considering allocating to a QOF can benefit from various incentives, including community revitalization, downside protection, diversification, and tax advantages.

Opportunity Zones (OZs) offer investors a unique opportunity to defer capital gains taxes and potentially earn tax-free gains over a decade by investing in Qualified Opportunity Funds (QOFs) focused on revitalizing distressed communities.

These designated geographic areas incentivize investment in real estate or businesses within them, with QOFs required to allocate at least 90% of their assets to OZs, certified by the U.S. Treasury Department for tax benefits. This initiative aims to stimulate economic growth in neglected areas while offering investors significant tax advantages.

In addition to the tax benefits associated with Opportunity Zones, the Tax Reform Act provides supplementary advantages such as increased expensing and accelerated depreciation for qualified property. Moreover, QOFs not only offer tax incentives but also contribute to social impact and environmental sustainability in low-income areas, fostering community development with philanthropic support for impactful measurement and implementation.

Access the full report for insights on deferring capital gains taxes and earning tax-free gains over ten years through Qualified Opportunity Zones and Funds, including updates on Treasury's proposed regulations.

If you do not have a work email address, please email us at and we can email you the report directly.

Table of Contents

  • Introduction to Opportunity Zone

  • What Is an Opportunity Zone?

  • How It Works

  • Why Should an Investor Allocate to a QOF?

  • Reinvested Capital Gain Benefit?

  • Comparing an Opportunity Zone to a 1031 Exchange?

  • Other Tax Benefits?

  • Qualified Opportunity Fund Frequently Asked Questions?

  • Qualified Opportunity Fund Social Impact / ESG Benefits?

  • Treasury Proposed Regulation Update

Thanks to our Contributor


Highmore is a global alternative asset management firm investing in both public and private markets, directly and indirectly, across asset classes and investment structures.


Access PrimeAlpha Alternatives Education, Research, and Database of Managers and Investors
bottom of page