U.S. Treasury approved tax incentives for 14 Virgin Islands opportunity zones

The U.S. Department of the Treasury announced on April 4, 2018, that it had approved 14 neighborhoods on St. Thomas and St. Croix nominated by Gov. Kenneth E. Mapp as Qualified Opportunity Zones under the Tax Cuts and Jobs Act of 2017.

The designation made those areas eligible for federal tax incentives intended to encourage investment in economically distressed communities. Under the law, investors who reinvest capital gains in qualifying properties or businesses in designated opportunity zones could defer federal capital gains taxes for up to seven years, reduce the taxable amount of those gains by as much as 15 percent, and avoid federal capital gains tax on appreciation in the new investment.

According to Government House, the approved Virgin Islands areas included Christiansted and the western end of St. Croix, as well as most of the southern half of St. Thomas. The designation was set to remain in place for 10 years.

Treasury also approved opportunity zones in American Samoa, Puerto Rico and 15 states, according to the announcement.

Official source: https://www.vi.gov/u-s-treasury-approves-tax-incentives-for-virgin-islands-opportunity-zones/