Business Real Estate in RI | Information & Resources

OPPORTUNITY ZONES

OZ Background

The Opportunity Zones program is a new economic development tool for designated Rhode Island communities to attract private equity investment in businesses and real estate. This federal program provides a tax incentive for private investors to direct capital gains into equity investments in qualified projects within designated Opportunity Zones. The incentive is designed to encourage long-term investment — with certain tax benefits kicking in only after the investment is maintained for at least ten years.

Easily find real estate for sale in Rhode Island Opportunity Zones at our OZ property search site.

In addition, find investors by submitting projects here. And indicate your interest in investing here.

You may also sign up for news and updates on Rhode Island commercial real estate incentives here.

Rhode Island OZs

Rhode Island Opportunity Zones are located in 25 census tracts spread across the following fifteen municipalities: Bristol, Central Falls, Cranston, Cumberland, East Providence, Narragansett, Newport, North Providence, Pawtucket, Providence, South Kingstown, Warren, West Warwick, Westerly, and Woonsocket. Opportunity Zones in Rhode Island have the potential to attract private investment for business expansion, startup creation, and real estate development; promote synergy with state and local efforts; and support the needs of local communities.

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How Do Opportunity Zones Work?

Investors can invest in Opportunity Zones through Qualified Opportunity Funds. Eligibility as an investor is broad and open to individuals and businesses, including corporations and partnerships. Investors are eligible to take advantage of certain benefits on the taxation of their capital gains:

  1. Deferral: Capital gains that are invested in Qualified Opportunity Funds may temporarily defer capital gains taxation until the investment is sold (or, if not sold, until December 31, 2026).
  2. Reduction in capital gains tax for long term investments: Capital gains that are invested in Qualified Opportunity Funds for at least five years or seven years may step up its basis, respectively, by 10% or 15%. This means $100 of invested capital gains will have $15 tax-free after keeping the investment for at least seven years.
  3. Exclusion of capital gains tax on appreciation of investments: Capital gains resulting from appreciation of Opportunity Fund investments are excluded from taxation if the original investment is held for at least ten years.

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