Federal Opportunity Zones
Spurring economic growth in Philadelphia
The City of Philadelphia seeks to work with its partners, local businesses, community members, and Opportunity Zone investors to drive inclusive, equitable growth in our neighborhoods.
The Tax Cuts and Jobs Act of 2017 created a new tax incentive to stimulate investment in low income communities. The program encourages investors to re-invest previously unrealized capital gains into Opportunity Funds in exchange for a temporary tax deferral, partial tax reduction on the initial capital gain, and elimination of capital gain tax on the new investment. Opportunity Funds are investment vehicles that bring capital to low-income community Opportunity Zones, which were designated by governors in each state. Philadelphia’s Opportunity Zones represent 82 of the 8,700 designated census tracts throughout the country.
When an investor chooses to invest in a project located in one of Philadelphia's Opportunity Zones, they can also access existing local incentives to support business growth and development.
- 10-Year Real Estate Tax Abatement — The 10-year real estate tax abatement for new construction and renovations of residential and commercial properties is available city-wide.
- Keystone Opportunity Zones (KOZs) — KOZs provide substantial relief from state and local taxes for qualified businesses located on designated parcels of land. Current KOZ properties are shown in the Additional Location-Based Incentives map below.
- Flexible Financing from PIDC — PIDC’s loans can support for-profit and nonprofit borrowers that need flexible financing to complete real estate projects located in designated Opportunity Zones in Philadelphia that will benefit existing residents and businesses in these communities. Financing may be offered as senior, subordinate, or mezzanine debt.
The City seeks to identify and support projects which include social impact components such as:
- Creating or retaining permanent jobs for local, diverse, lower-income individuals, including contribution to, or participation in, job readiness and training programs.
- Providing access to quality pre-K and after-school care.
- Offering important community goods, services, and facilities in the proposed development project.
- Delivering access to affordable healthy food, if such access is not currently present in the community.
- Providing affordable housing within the proposed development.
If you’re interested in learning more about Philadelphia’s Opportunity Zones, other incentives available to those who invest here, or potential connections to existing businesses and community organizations in the Zones, you can contact the City of Philadelphia’s Department of Planning Development, Division of Development Services, at firstname.lastname@example.org or 215-683-4686.
Learn more about federal Opportunity Zones and investment requirements from the Pennsylvania Department of Community and Economic Development or IRS.
Note: Opportunity Zone maps are not accessible on mobile devices.