The Village of Los Lunas has several Opportunity Zone Areas that are ready for Economic Development Private Investment. On Friday, May 18th, 2019, the US Department of the Treasury designated 63 Opportunity Zones in New Mexico. These zones are located in rural, tribal, and urban communities in 22 counties. The qualified Opportunity Zones retain this designation for 10 years.
The Opportunity Zone program was created by the Tax Cuts and Jobs Act of 2017. It was formed to generate economic activity and job creation in low-income communities. Also, it encourages investments of an unrealized capital gain into low-income community projects/businesses.
- The benefits include:
- Deferral of capital gains
- Reduction of deferred gain over time
- Permanent gain exclusion on appreciation of the investment.
- Capital Gain Deferral Period (Deferred until investment is sold or Dec 31st, 2026 whichever comes earlier. If investment is not sold before Dec, 31st, 2026 any remaining deferred gain is recognized at that time.)
- Permanent Reduction of Deferred Gain
- Permanent exclusion for investment held for at least 10 years.
There are currently several areas in the Village of Los Lunas in designated Opportunity Zones including the Los Morros Business Park, Huning Ranch Business Park, Central New Mexico Rail Park, and the Los Lunas Transportation Center Metropolitan Redevelopment Area. There are also some in the areas east of Interstate 25.