Dynamic Metric Layers: Opportunity Zones | NIC MAP Vision Help Center

The Opportunity Zone Dynamic Metric Layer displays the census tracts identified by the IRS that qualify as IRC 1400Z-2 areas. These zones are categorized as “economically-distressed” communities where new developments may be eligible for preferential tax treatment to spur job growth and economic development.

To access this background layer in the Explorer tool, first click the Map tab, open the “Background Layer” drop-down list and select “Opportunity Zones.” The layer will display the designated census tracts and you may need to zoom out to see the census tracts considered. You will notice that both yellow and green zones populate the map. These colors represent different types of tax credits provided by the government.

The yellow areas (labeled 1-1 in the legend) are census tracts that were submitted to the IRS and qualified as Opportunity Zones. These Opportunity Zone are eligible for a single tax credit in which investors can “defer (up to nine years) paying tax on gains if those gains are invested in qualified opportunity funds (QOFs) that in turn invest in OZ” (Source). The gain must be invested in the specified QOF within 180 days of obtaining the gain to qualify for the tax credit. Additionally, this incentive supports long-term investments in Opportunity Zones by permitting partial forgiveness (up to 15%) of the deferred gain. This incentive works as follows: “For investment held at least five years, the taxpayer’s basis is increased by 10 percent of the original gain. For investments held for at least seven years, the taxpayer’s basis is increased by an additional 5 percent of the original gain” (Source).

Green areas on the map (labeled 2-2- in the legend) are qualified as both Opportunity Zones and to receive New Market Tax Credits. NMTC areas provide incentive to bring private investment into low income economies. Introduced in 2000, and extended most recently through 2019, this program “Provides a tax credit against Federal Income taxes that make Qualified Equity Investments (QEIs) in certified financial intermediaries called “Community Development Entities” (CDEs). CDEs, in turn, use the proceeds of these QEIs to make Qualified Low-Income Community Investments (QLICIs), such as business loans, in Low-Income Communities” (Source). NMTCs are NOT awarded to individuals or privately held companies. The NMTC is over a 7-year period of time and has a rate of 5% of the original investment for the first 3 years and 6% of the original investment for the last 4 years, totaling 39% of tax credits of the original amount.

Because the green areas on the map are qualified as both Opportunity Zones and New Market Tax Credit eligible areas, investments in these areas are subject to double tax credits, or an option between the two. Due to the recent nature of the Opportunity Zone legislation, further clarification on the combination of these two incentives is likely to be published from the US Treasury in the future.