Opportunity Zone Program creates investment opportunities for a stronger El Dorado
The Tax Cuts and Job Act, enacted by Congress in 2017, established the new Opportunity Zone program, consisting of Opportunity Zones and Opportunity Funds.
The Opportunity Zone program offers local citizens the opportunity to invest back into their communities and proactively be a part of the solution to problems such as population decline, lack of jobs and crumbling infrastructure. The program provides deferral and reduction of capital gains taxes when the gain is invested in a qualified opportunity fund and maintained for at least five years. Additional tax incentives are available for investments held for periods of seven and ten years.
A census tract in El Dorado, Kansas was designated as one of 8,761 qualified Opportunity Zones in the nation. Find out how your investment could help build a stronger El Dorado, while saving you tax dollars.
Why invest in El Dorado?
“The tax benefit created by the 2017 Tax Cuts and Jobs Act, is designed to spur economic development and job creation by encouraging long-term investments in economically distressed communities nationwide.” - U.S. Treasury
According to the Enterprise Opportunity 360 measurement report, the census tract identified as an Opportunity Zone in El Dorado is underserved in the areas of housing stability, health and wellbeing, and economic security.
Revitalizing businesses and homes in the area would provide affordable housing and jobs, while strengthening the business community and increasing the tax base.
The potential for success of investment in the area has been demonstrated by the ongoing public/private sector development in the district over the past 20 years.
Major projects within the zone would be:
- Intrust Bank renovation
- Emprise Bank
- El Dorado YMCA
- 220 Central Building
- Butler Rural Electric
- Community National Bank
- El Dorado Family Dentistry
- Susan B. Allen Memorial Hospital professional buildings and Cancer Treatment Center
Benefits of Opportunity Zone incentives
Taxpayers can get
- capital gains tax deferral
- partial forgiveness of capital gain tax (10% for 5 year investment, 15% for 7 year investment)
- forgiveness of additional gains (for 10 year investment)
for making timely investments in Qualified Opportunity Funds which invest in Qualified Opportunity Zone property.
What are Qualified Opportunity Zone Funds?
An investment vehicle organized as a corporation or a partnership for the purpose of investing in Qualified Opportunity Zone Property. An eligible taxpayer can self-certify to become a certified Qualified Opportunity Fund, or can invest in an existing fund.
Qualified Opportunity Zone investments
The City of El Dorado is working on several potential projects that include retail and/or high-density residential development in our Opportunity Zone. We are targeting a few prime projects to serve as a catalyst for our downtown that would create more density.
The City of El Dorado is specifically targeting real estate development.
An investor may invest directly in the business property or indirectly by purchasing stock or partnership interest in the qualified OZ business.
Following are links to more information about Opportunity Zones:
Novogradac & Company, LLP Opportunity Zones Resource Center
El Dorado Opportunity Zone brochure
For more information about El Dorado's Opportunity Zone contact:
David Dillner, El Dorado City Manager, 316-321-9100, Email David Dillner
Sarah Hoefgen, Executive Director El Dorado, Inc., 316-321-1485, Email Sarah Hoefgen
