An Opportunity Zone is a portion of an economically-distressed community where new investments - under certain conditions - may be eligible for preferential tax treatment. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.
How do Opportunity Zones spur economic development?
Opportunity Zones are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. (A QOF is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property). If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.
Christiansburg’s Opportunity Zone
The Town of Christiansburg’s Opportunity Zone begins at the edge of downtown and stretches east along Roanoke Street and south along South Franklin Street, before entering Montgomery County. Christiansburg’s Opportunity Zone is one of only five in the New River Valley.
Town staff can provide a list of available properties in our Opportunity Zone.
Interested in learning more?
We’ll be holding public information sessions on Opportunity Zones. Once those dates have been scheduled, we will update this page.