Opportunity Zone
To stimulate private participation in revitalization of economically distressed areas, taxpayers who invest in Qualified Opportunity Zones are eligible to benefit from capital gains tax incentives available exclusively through this new legislation.
The City of Killeen includes federally designated Qualified Opportunity Zones (QOZs) — census tracts identified for long-term private investment and economic revitalization. Through this federal program, investors who reinvest eligible capital gains into a Qualified Opportunity Fund may receive significant tax benefits under Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code.
Opportunity Zone investments may provide:
Deferral of capital gains taxes when gains are reinvested into a Qualified Opportunity Fund
Potential reduction of tax liability depending on holding period
Potential elimination of additional capital gains on new appreciation if the investment is held for the required term
To qualify, investments must be made through a Qualified Opportunity Fund that maintains at least 90% of its assets in eligible Opportunity Zone property. Eligible investments include:
Equity ownership in operating businesses located within a Killeen Opportunity Zone
Real estate development or substantial rehabilitation projects within designated tracts
Partnership interests in qualified zone businesses
Killeen leverages Opportunity Zones as part of a broader economic development strategy, often layering federal Opportunity Zone benefits with local tools such as Chapter 380 agreements, Tax Increment Reinvestment Zones (TIRZ), and Foreign Trade Zone assistance where applicable.