New Federal Opportunity Zones offers investors tax benefits in the Soundside region
As part of the 2017 Tax Cut and Job Act, the federal government created Opportunity Zones (OZ). The goal of Opportunity Zones is to attract investment capital into under-invested areas by offering tax incentives. Investors realize several tax benefits based on the amount of time the capital is invested in OZs including deferred capital gains and reduced capital gains tax liability. In October 2018, the U.S Treasury released proposed rules clarifying the types of investments. CBRE offers a guide on what qualifies as an OZ Business Investment or OZ business property and what the tax advantages are.
Opportunity Zones cover a significant part of the Soundside Region including properties zoned for industrial, commercial, mix-use, and multi-family residential development. OZs cover areas including Downtown Burien, Downtown SeaTac, Des Moines along SR-99, and Tukwila Southcenter Boulevard near a new light rail station. The Soundside Alliance offers a map of the Soundside Opportunity Zones with properties for sale.