Superfund Redevelopment Using Opportunity Zone Tax Incentives
Opportunity Zones are a powerful way to encourage revitalization in economically distressed communities. Redevelopment of current or former Superfund sites may qualify for Opportunity Zone tax benefits. Learn more below or view EPA’s fact sheet for more information:
On this page:
- What are Opportunity Zones?
- Can Superfund Sites Qualify for Opportunity Zone Benefits?
- What are the Tax Benefits?
- Can Communities Promote Opportunity Zones and the Reuse of Superfund Sites?
- EPA Regional Opportunity Zone Contacts
Opportunity Zones attract long-term private investors and stimulate economic growth. They were created by the 2017 Tax Cuts and Jobs Act and established in all 50 states, the District of Columbia and the five U.S. territories. Opportunity Zones can help revitalize contaminated and formerly contaminated properties, including Superfund sites. They attract private investment and strengthen the financial viability of redevelopment projects.
View a map of Opportunity Zones and learn more about Opportunity Zones in your state or territory:
Redevelopment of current or former Superfund sites may qualify for Opportunity Zone tax benefits. Superfund site property located within an Opportunity Zone qualifies for tax benefits when the qualifying investment commences an “original use” on the property or “substantially improves” the property (doubles the basis in the property) in a specified timeframe.
U.S. taxpayers are eligible to receive tax benefits on realized capital gains reinvested in Opportunity Zones through Qualified Opportunity Funds (QOFs). These benefits include:
Temporary Deferral of Capital Gains Taxes: Investors are not taxed on the capital gains invested in a QOF until they exit the fund or December 31, 2026, whichever comes first.
Step Up in Basis: Investments held for a minimum of five years will be taxed at the reduced rates of 90% for investments held for at least five years (10% basis increase) and 85% for investments held for at least seven years (15% basis increase).
Tax-Free Gains After Year 10: If an investor holds a reinvestment for 10 years, capital gains achieved by the QOF investment during that period will not be taxed. This is a permanent exclusion from taxable income.
Many communities are using Opportunity Zones to attract investors and developers. EPA and the U.S. Department of Housing and Urban Development (HUD) have tools and resources to help local leaders achieve equitable outcomes at development projects in Opportunity Zones. Learn more:
- EPA’s Opportunity Zone information
- HUD’s information for communities, including toolkitsExit
- HUD’s information for investorsExit
|1||Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island & Vermont||Jessica Dominguez (email@example.com)|
|2||New Jersey, New York, Puerto Rico & Virgin Islands||Lance Caldwell (firstname.lastname@example.org)
Dave Kluesner (email@example.com)
|3||Delaware, District of Columbia, Maryland, Pennsylvania, Virginia & West Virginia||Betty Barnes (firstname.lastname@example.org)
Samantha Beers (email@example.com)
|4||Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina & Tennessee||Jay Bassett (firstname.lastname@example.org)|
|5||Illinois, Indiana, Michigan, Minnesota, Ohio & Wisconsin||Jon Grosshans (email@example.com)|
|6||Arkansas, Louisiana, New Mexico, Oklahoma & Texas||Gloria Vaughn (firstname.lastname@example.org)|
|7||Iowa, Kansas, Missouri & Nebraska||David Doyle (email@example.com)
Andrew Wynne (firstname.lastname@example.org)
|8||Colorado, Montana, North Dakota, South Dakota, Utah & Wyoming||Laura Farris (email@example.com)
Patrick Davis (firstname.lastname@example.org)
|9||Arizona, California, Hawaii, Nevada, American Samoa & Guam||Christopher Hage (email@example.com)
Scott Stollman (firstname.lastname@example.org)
|10||Alaska, Idaho, Oregon & Washington||Tim Hamlin (email@example.com)
Viccy Salazar (firstname.lastname@example.org)