About Opportunity Zones

FOZ logo horizontalOpportunity Zones, a new economic development tool enacted by the Federal Tax Cuts and Jobs Act of 2017, offers investors preferential tax treatment for capital gains invested in low income communities designated as Opportunity Zones. The program is designed to encourage long term investment in economically distressed areas and promote economic growth. These investments will provide support to projects focused on a wide array of issues including, for example, downtown revitalizations, improvements to workforce housing, and expansions of industrial parks and innovation districts.

In April of 2018, Governor Colyer nominated 74 census tracts across Kansas to be designated by the U.S. Department of Treasury as Kansas Opportunity Zones. These Designated Opportunity Zones are now eligible to receive investments through Qualified Opportunity Funds to spur economic growth in their communities.

For the investor, the Opportunity Zone program offers tax incentives including deferral and reduction of capital gains taxes when the gain is invested in a Qualified Opportunity Fund and maintained for a period of at least five years. 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 is sold or exchanged, or December 31, 2026. If the Qualified Opportunity Fund investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain, after 7 years, the 10% becomes 15%.  Additionally, if the investor holds the QOF investment for at least ten years, the investor is eligible for a permanent exclusion from taxable income of capital gains accrued on the QOF investment.

Get more FAQs about Opportunity Zones.

The specific census tracts and their counties to be included in the governor’s nominations for designation as Opportunity Zones are:

20001952900 Allen
20003953600 Anderson
20005081900 Atchison
20009971400 Barton
20009971700 Barton
20015020400 Butler
20029977200 Cloud
20035493700 Cowley
20035493800 Cowley
20037956600 Crawford
20037956900 Crawford
20037957500 Crawford
20037957600 Crawford
20045000200 Douglas
20045000400 Douglas
20055960501 Finney
20055960600 Finney
20057961800 Ford
20057962101 Ford
20059954200 Franklin
20059954400 Franklin
20063955100 Gove
20063955200 Gove
20065952100 Graham
20071958100 Greeley
20089576100 Jewell
20089576200 Jewell
20091052102 Johnson
20091052417 Johnson
20091053555 Johnson
20091053557 Johnson
20091053601 Johnson
20099950400 Labette
20101956600 Lane
20103070100 Leavenworth
20111000500 Lyon
20121100700 Miami
20125950200 Montgomery
20125951200 Montgomery
20125951300 Montgomery
20137951700 Norton
20139010400 Osage
20155000600 Reno
20155000700 Reno
20155001000 Reno
20155001300 Reno
20157978300 Republic
20161000500 Riley
20161000801 Riley
20161001100 Riley
20163974600 Rooks
20163974700 Rooks
20169000100 Saline
20169000600 Saline
20173000400 Sedgwick
20173000900 Sedgwick
20173001100 Sedgwick
20173002600 Sedgwick
20173003200 Sedgwick
20173003700 Sedgwick
20173003800 Sedgwick
20173004300 Sedgwick
20173006300 Sedgwick
20177000700 Shawnee
20177000800 Shawnee
20177004000 Shawnee
20181453700 Sherman
20185470600 Stafford
20209041800 Wyandotte
20209042200 Wyandotte
20209043905 Wyandotte
20209044101 Wyandotte
20209045100 Wyandotte
20209045200 Wyandotte