Which type of zones can qualify for certain investment deductions?

Opportunity zones qualify for certain investment deductions because they are designated low-income areas where investment is encouraged to spur economic growth. The Opportunity Zones program, established under the Tax Cuts and Jobs Act, provides significant tax incentives to investors who invest in these areas. Specifically, investors can defer and potentially reduce capital gains taxes on investments made in qualified opportunity funds, which in turn invest in opportunity zone properties.

This designation encourages long-term investments that can create jobs and improve local economies. The specific incentives associated with Opportunity Zones, including tax deferrals and potential exclusion of capital gains from investments held for a certain number of years, make them a central focus for those looking to maximize the tax efficiency of their investments. Other types of zones listed do not offer the same tax benefits related to investments as Opportunity Zones do.