Charlotte County: The Land of Opportunity (Zones)

Opportunity Zones Support Long-Term Investment.

There’s a tool in Charlotte County’s economic development toolbox: Opportunity Zones. Charlotte County has three geographic areas certified by the U.S. Treasury as economic Opportunity Zones. These zones were created by the Federal Tax Cut and Jobs Act of 2017, and are designed to stimulate private, long‐term investment in economically distressed areas. Qualifying Opportunity Zone investments may receive federal tax benefits, subject to applicable requirements, investment dates and holding periods. Charlotte County’s current Opportunity Zone designations remain in place through December 31, 2026. A revised federal Opportunity Zone program begins January 1, 2027.

The three designated Opportunity Zones in Charlotte County (see map) are a large area east of the city of Punta Gorda; a smaller tract north of Charlotte Harbor; and a comparable tract on the western edge of the county on the Gulf of Mexico. Charlotte County’s three Opportunity Zones are census tracts that were submitted for approval to the U.S. Treasury Department by Governor Rick Scott’s office (note: census tracts correspond roughly to neighborhoods, with an average population of 4,000 people).

Image depicting Opportunity Zones in Charlotte County

Image depicting Opportunity Zones in Charlotte County Image depicting Opportunity Zones in Charlotte County

Investment Overview

Federal Opportunity Zone rules may provide tax benefits for qualifying investments. Eligibility and tax treatment depend on the investment date and applicable federal requirements.

  • Opportunity Funds must hold 90% of assets in designated Opportunity Zone properties or businesses.
  • If used for property purchases, the property must also be improved after the purchase.
  • Investments in a business require the purchase of stock or a partnership. Loans are not valid.
  • Investments can be combined with other tax-advantaged vehicles such as the Low Income Housing Tax Credit.
  • Investments can be made in any Opportunity Zone in the U.S. and/or in multiple zones.

Tax Benefits of Opportunity Zone Funds

  • Temporary Deferral
    • Capital gains from the sale of any asset (if reinvested in 180 days) are deferred until the sale of the new investment, or December 31, 2026, whichever is earlier.
  • Step-Up in Basis
    • The tax treatment of Opportunity Zone investments depends on the investment date, holding period and applicable federal rules. Investors should review current IRS guidance and consult a qualified tax professional.
  • Permanent Exclusion
    • Qualifying investments held for at least 10 years may be eligible to exclude certain post-investment gains, subject to applicable federal requirements.

To learn more about the advantages of investing in Opportunity Zones, and to explore qualified sites and properties, talk to the Charlotte County Economic Development Office today.