Opportunity Zone Clarification

I had thought there may be a way to invest in Opportunity Zones with capital not from an asset sale, however, I received the following response from EIG clarifying that the fund must be seeded with capital from a sale:

The Opportunity Zones tax incentives only apply to investments made with capital gains dollars. Opportunity Funds can contain “mixed funds” — that is, capital gains and non-capital gains dollars, but any portion of any investment made with non-capital gains dollars would be accounted for separately essentially as a separate investment, and again would not qualify for any of the tax incentives.” 

David Cervantes

Research & Policy Fellow

Economic Innovation Group