Opportunity Zones

An Opportunity Zone is an area that has historically lacked investment and where new investors in property or businesses may qualify to receive tax incentives.

The U.S. Department of Treasury has certified 252 Opportunity Zones in North Carolina and 17 zones in Charlotte. The zones are based on census tracts: small subdivisions of a county or similar entity that act as stable geographic units for presenting statistical data.

Opportunity Zones can help promote inclusive and equitable economic development, affordable housing and job creation. The city's role is to:

Provide information about Opportunity Zone funds to developers, business owners and residents.
Connect businesses or developments in targeted Opportunity Zones with the funds.
Use existing city programs and incentives to support Opportunity Zone projects that align with community goals and values.
Target strategic projects in Opportunity Zones that promote economic mobility.
Reduce the potential negative impact of Opportunity Fund investments.

How are Opportunity Zones Useful?

Investors with recently realized capital gains invest in local businesses, real estate or development projects through Qualified Opportunity Funds, in exchange for a reduction in their tax obligations.

A Qualified Opportunity Fund is a partnership or corporation for investing in eligible property located in an Opportunity Zone. Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund until the date on which the investment in a fund is sold or exchanged, or Dec. 31, 2026, whichever is earlier.

At least 90% of the investments must be spent on an operating business, equipment or real estate within an Opportunity Zone.

The funds do not provide direct grants, but can provide repayable loans or equity investments. Funds have the potential to direct financing to areas of Charlotte where access to traditional capital is difficult.

How Can Business Owners Use the Opportunity Zone Program?

Existing business owners can benefit from being in an Opportunity Zone in two ways:

Attract new capital: Potential investors can take advantage of the Opportunity Zone tax incentives by investing in a business through a Qualified Opportunity Fund.
Self-investment: A business owner's capital gains can earn Opportunity Zone tax incentives if the owner invests it back into the business.

How can Property Owners Benefit from Opportunity Zones?

Property owners in Opportunity Zones can benefit by attracting new investors or tenants. Property owners who own land within an Opportunity Zone and are willing to sell may find their property is highly sought by investors or potential buyers. Property owners may also benefit through businesses that rent space on their property and can attract and acquire investments from Qualified Opportunity Funds.

Key Opportunity Zones in Charlotte

East Charlotte

The Eastland Area Plan established a vision for the former Eastland Mall site and the surrounding area. The plan is defined by a unique town center, attractive mixed-use corridors and distinct gateways. A new development plan is underway for the mall site which will transform the site into a more vibrant destination that spurs economic activity and acts as a community hub that serves East Charlotte and beyond.

North End and North Tryon

The North End and North Tryon Opportunity Zone connects uptown Charlotte to the University of North Carolina at Charlotte, and is bounded by Statesville Avenue, North Tryon Street, Interstate85 and Sugar Creek Road. It includes established neighborhoods such as Druid Hills, Lockwood, Sugar Creek and Tryon Hills, and major developments such as the North End Smart District and Camp North End.

The area's proximity to the Charlotte Area Transit System's LYNX Blue Line also creates transit-oriented development opportunities along North Tryon Street. There are multiple infrastructure and transportation initiatives underway in the area, including the Cross Charlotte Trail, the Applied Innovation Corridor and the Northeast Corridor Infrastructure Program. These projects represent $173 million in public investment.

Wilkinson Boulevard, Charlotte Douglas International Airport and LYNX Silver Line

The Charlotte Douglas International Airport is a major economic engine contributing $23 billion in annual economic output, $1.1 billion in state and local taxes, and 132,330 jobs for North Carolina residents. With major development planned for the area surrounding the airport's entrance on Wilkinson Boulevard, and the future LYNX Silver Line, this Opportunity Zone is set to transform with opportunities for community-driven investment in aviation, logistics, retail, hospitality and offices.

Freedom Drive

Freedom Drive is a major transportation corridor from Uptown to Interstate85. The area has seen an increase in commercial redevelopment activity, and investment in its established neighborhoods, such as Wesley Heights, Bryant Park, Enderly Park and Ashley Park. Current infrastructure investments underway in this area include Ashley Road sidewalks and the Tuckaseegee Road, Berryhill Road and Thrift Road roundabout.

West Trade Street and Beatties Ford

West Trade Street and Beatties Ford Road is a historic corridor that includes several established communities, educational institutions such as Johnson C. Smith University, Northwest School of the Arts and West Charlotte High School, and prominent cultural and civic assets.

The corridor is poised for high growth with phase2 of the CityLYNX Gold Line, — a $150 million streetcar investment — complete. The West Trade/Rozzelles Ferry Comprehensive Neighborhood Investment Program (CNIP) project will also bring $20 million in public investment in new streets, infrastructure and a new plaza at the Five Points intersection.

Rozzelles Ferry

Rozzelles Ferry is located just northwest of Uptown, close to West Trade Street and Beatties Ford Road. The area has seen recent investment in office, neighborhood-serving retail, streetscape and greenways. As part of the West Trade/Rozzelles Ferry CNIP, Rozzelles Ferry Road will provide a pedestrian-friendly streetscape and a safe connection to the CityLYNX Gold Line station.

Learn More About Opportunity Zones

Several partners and government agencies have additional information related to Opportunity Zones. Those agencies include:

The Internal Revenue Service Opportunity Zones Frequently Asked Questions.
North Carolina Department of Commerce: North Carolina Opportunity Zones Program.
U.S. Department of Housing and Urban Development: The White House Opportunity and Revitalization Council.
Economic Innovation Group: Opportunity Zones.
Local Initiatives Support Corporation: Opportunity Zones.

Other Economic Development Programs

Additional City of Charlotte investment and growth programs and initiatives include:

Business Matching Grants: Small businesses, property owners and developers located in the City of Charlotte's Business Corridor Revitalization Geography can apply for Business Matching Grants, which assist owners with the cost of improving their properties.
Business Investment Grants: Business Investment Grants are reimbursements of incremental ad valorem property taxes paid to eligible businesses based upon the amount of property tax generated by the investment and the number of jobs created when the company moves or expands in Charlotte.
Tax Increment Grant: Tax Increment Grants (TIG) are reimbursed ad valorem property taxes awarded to projects that advance economic growth and the city's land use goals.

Housing Trust Fund: The Housing Trust Fund provides financing to developers for affordable housing. The fund utilizes voter-approved housing bonds and is administered by the city's Housing & Neighborhood Services Department.

Enhanced Review: The city's Planning, Design & Development Department offers enhanced review, a shortened timeframe for certain types of development projects. This option offers project teams overall predictability and coordination of comments and revisions between staffs.

Share your Opportunity Zone Listing

The Opportunity Zone directory is a compilation of funding opportunities, projects, businesses and nonprofit partners in Opportunity Zones. Complete the Charlotte Opportunity Zone listing entry form to have your listing added to the Opportunity Zones map/directory.