Opportunity Zone

Maximize your investments and
grow your assets.

A tax incentive that pays off.

Opportunity Zones are a new community development pogram established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The program provides a tax incentive for investors to re-invest their unrealized capital gains into an OZF (OZ Fund) that is dedicated to investing into OZ designated by the chief executives of every U.S. state and territory. States have designated up to 25% of low-income census tracts as Opportunity Zones. There are 8,761 census tracts that have the OZ designation spread across the country. These tracts have an average poverty rate of 32% compared with the national average of 17%.

Tax reduction solutions for investors and fund managers.

Deferral of Capital Gains Taxes

Capital gains from the sale of any asset (if reinvested within 180 days) are deferred until the sale of the new investment, or December 31, 2026, whichever is earlier*.

Set-up in Basis

Any investment re-invested and held for 5 years gets a tax basis increase of 10%, and any investment held for 7 years gets a tax basis increase of 15% — thereby reducing the original capital gains tax by that amount.

Permanent Elimination

Investments held for 10 years will pay no capital gains tax on the post-acquisition gains. This permanent exclusion only applies to the gains accrued in an Opportunity Fund.

Services

Outstanding Customer Service

Every Opportunity Zone Fund customer works with our specialized Relationship Manager to define a solution tailored to your needs. Our banking support team will work closely with your team to develop control and security procedures to help mitigate the risk for your transaction.

Operating Accounts for Portfolio Companies

Full-service online and mobile banking for portfolio companies.

Fund Administration

Northern Bank does not provide Opportunity Zone fund administration but we work with experienced companies who deliver fund administration services for their clients.

Ready to take the next step? We’re here to help!

Contact us now to learn more about how Northern Bank can help you realize your goals and dreams.