The Federal Tax Cuts and Jobs Act of 2017 established a new revitalization tool that is in place in Henrico County. The Act authorized the establishment of the Opportunity Zone program, which provides a tax benefit when capital gains are invested into Opportunity Funds that are dedicated to financing qualified projects within Opportunity Zones. The program was designed to provide flexibility to enable investment in a variety of different economic sectors. The Henrico County Opportunity Zones were approved by the US Department of the Treasury and consists of seven census tracts in several areas of Henrico where there is an excellent opportunity for investment and business development.
The Opportunity Zone program is administered by the U.S. Dept. of Treasury. Proposed regulatory guidelines for the program focusing on requirements for Qualified Opportunity Funds (QOFs) were issued by Treasury and the IRS on October 19, 2018. A second round of draft regulations is expected to be released for comment in late March 2019.
The Opportunity Zone designation does not change the zoning of any property.
Location of Henrico Opportunity Zones:
The Henrico Opportunity Zone consists of the following seven census tracts:
Tract 2015.02 – Airport Industrial Area
Tract 2015.01 – Laburnum and Williamsburg Road Commercial and Industrial Area
Tract 2008.05 – Richmond Raceway Area
Tract 2005.01 – Libbie Mill, Brookfield Office Park, Broad Street Area
Tract 2003.03 – Reynolds Crossing and Glen Forest Office Parks Area
Tract 2001.05 – Regency Retail Area, North of Quioccasin Road
Tract 2001.06 – Regency Square Mall Area
To access maps of the Opportunity Zones, click on one of the map links described below or use the County GIS system to view all opportunity zones in the County.
Maps of the Opportunity Zones
|Tracts 2001.05, 2001.06, 2003.03,
2005.01Areas west of Parham Road around the Regency Mall retail area; Reynolds Crossing, Glen Forest, and Brookfield Office Parks; and the Libbie Mill area.
Area around and including the Richmond Raceway along Laburnum Avenue, Richmond Henrico Turnpike, and Carolina Avenue.
|Tracts 2015.01, 2015.02
Areas adjacent and south of the Richmond International Airport, including interchanges with I-295 and I-895.
Users may enlarge (zoom in) the above maps.
To access maps of the Opportunity Zone using the County’s GIS system,
Navigate to the County GIS System
- Select the Layers button on in the top left of the map.
- Check the box next to Planning.
- Click the small arrow next to the Planning box to open up the group.
- Check the box next to Opportunity Zones.
- Zoom/Scroll around the county to view the opportunity zones in the county.
These maps can also be used to locate the Henrico Enterprise Zone by clicking the “Enterprise Zone” box.
To see if your address is located within an Opportunity Zone.
- Once the opportunity zones are displayed on the map (see above for instructions), you can search your address to determine if your address falls within an opportunity zone. You may either zoom/scroll to your address or you may search for your address using the Search Tool.
- Select the Search box (top left corner).
- Click the down arrow button and select Henrico Address.
- Type the business location address or parcel address in the Search box – Once the address is entered; click the Search icon (magnifying glass).
Benefits for Investors of Opportunity Funds:
- The tax due on capital gains can be partially deferred by reinvesting gains into an Opportunity Zone Fund until the sale of the fund or until Dec. 31, 2026.
- The initial invested amount of capital gains exposed to tax is reduced by 10 percent if the investment is held for 5 years and an additional 5 percent if the investment is held for 7 years.
- For investments held in the fund for 10 years, there is no tax owed on new gains made from the initial investment in the Opportunity Fund.
- The Opportunity Zone program does not preclude the use of other state and local incentives such as: New Market Tax Credits, Low-Income Housing Tax Credits, Historic Preservation Tax Credits and Enterprise Zone incentives.