Opportunity Zones are census tracts consisting of low-income communities, as defined in the 2017 Tax Cuts and Jobs Act. An Opportunity Zone is intended to support renewed community investment through tax breaks for new development and local business investment.

Oahu’s Opportunity Zones that overlap portions of TOD neighborhoods are identified above, while the areas with adopted or proposed TOD zoning are shown below. The Opportunity Zones, combined with new zoning, rail service, and other public infrastructure investments, make these TOD areas an especially attractive place to develop, helping achieve the community TOD planning visions.

OPPORTUNITY ZONE DESIGNATION

Up to 25 percent of qualifying census tracts in each state can be designated an Opportunity Zone. State governors nominate the qualifying tracts, which are approved by the U.S. Treasury. Once approved, status is retained for 10 years.

General Requirements:

• A poverty rate of at least 20 percent; or
• A median family income of no more than 80 percent of the statewide median family income.

See U.S. Internal Revenue Code Section 45D(e) for further details.

Investment Limitations:

There is no cap on capital investments into qualified Opportunity Zones, which occurs through an established Opportunity Fund. However, only certain types of investments qualify for the capital gains tax incentives (tax deferrals or breaks), primarily:

• Partnership interests in businesses that operate in an Opportunity Zone.
• Stock ownership in businesses that conduct most or all of their operations in an Opportunity Zone.
• Property such as real estate located within an Opportunity Zone, specifically the construction of new buildings and/or substantial improvement of existing unused buildings—development must be completed within 30 months of purchase.

TOD Corridor Opportunity Zone 1: West Loch Station and Waipahu Station zoning, adopted

TOD Corridor Opportunity Zone 2: Pearl Highlands Station zoning, proposed