What is an Opportunity Zone?

The Opportunity Zones Program provides tax benefits for qualifying new or expanding projects and businesses within specially designated low income communities called qualified opportunity zones.

There are seven designated Opportunity Zones in Northern Kentucky. Profiles of the designated opportunity zones are included in the prospectus, and include:

• The city of Newport (Campbell County)
• The cities of Covington and Ludlow (Kenton County)
• The city of Florence and CVG (Boone County)

New and expanding projects and businesses that are located within qualified Opportunity Zones are eligible for several tax benefits if the business makes the real estate or business investment using qualified capital gains and through a Qualified Opportunity Fund. The benefits of investing in this manner qualify the business for:

• Reduction of the taxable basis of the invested capital gain by up to 15%
• Up to a seven-year deferral of taxes on the invested capital gain
• No taxes on gains made by the invested capital gain if held for at least 10 years

Investments that qualify for Opportunity Funds can include real estate and/or other business expenses, but there are some restrictions.

Opportunity Zone real estate investments that qualify for Opportunity Funds must be new construction or involve substantial rehabilitation investment in excess of the adjusted basis of the property.

The IRS also sets a rigorous test for business investments in Opportunity Zones. The best resource to determine eligibility is through a qualified tax professional.

Our region is proud to be home to many businesses – including multiple Fortune 500 headquarters – in diverse industries, including a strong talent pool, low labor costs, excellent quality of life, national recognition as a great place to live and do business, and easy access to the rest of the country.

View our Northern Kentucky Opportunity Zone Prospectus brought to you through a partnership with BE NKY and the Catalytic Development Funding Corporation of Northern Kentucky. The prospectus provides details about the seven Opportunity Zones located in Boone, Kenton and Campbell counties in Northern Kentucky, including information on the specific tools and incentives available in each zone.