Kern County, CA
Home MenuOpportunity Zones
Overview
Opportunity Zones were enacted as part of the 2017 tax reform package (Tax Cuts and Jobs Act) to promote long-term investment and economic growth in communities that have experienced limited economic recovery. The Federal Opportunity Zone program provides tax incentives to encourage private investment in designated low-income urban and rural areas.
The County of Kern has 35 Federal Opportunity Zones, with 15 located in Bakersfield, California.
This economic and community development tax incentive program provides an incentive for private investors to support distressed communities through private equity investments in businesses and real estate ventures. The incentive is a deferral, reduction and potential elimination of certain federal capital gains taxes.
Qualified Opportunity Zones retain this designation for 10 years. Investors can defer tax on any prior gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund, an investment vehicle organized to make investments in Qualified Opportunity Zones. In addition, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold.
What's Happening Now?
- Current Opportunity Zones that were designated in 2017 will expire soon.
- County must submit proposed zones to Governor by June 2026.
- Final zones announced late 2026 and become effective January 1, 2027.
Contact
- Melinda Brown, VP Business Development | KernEDC
- Melinda@kedc.com
- (661) 862-5058