A tract of land in Danbury is among 72 receiving approval from the U.S. Department of Treasury to become an opportunity zone. Qualified tracts must have a poverty rate of at least 20 percent of the median income that does not exceed 80 percent of the area median income.
The program provides a federal tax incentive for investors to re-invest unrealized capital gains into these special zones by pooling money with other investors through Opportunity Funds. In exchange for their investments, opportunity fund investors are able to decrease their federal tax burden through the preferential treatment of capital gains.
Qualifying investments may include a broad range of commercial and residential investments, such as transit-oriented development, affordable housing and mixed-use development, and energy efficiency and renewable energy projects on public and private assets.