The 2017 federal tax legislation, the Tax Cuts and Jobs Act, included a provision for what it calls “Opportunity Zones.” This new section of the tax code provides a series of tax incentives to private investors who utilize recently recognized capital gains to finance projects located in certain economically distressed census tracts.

Of the 8,700 census tracts designated as Opportunity Zones across the United States and its territories, more than 95 percent are deemed low-income and 5 percent moderate-income. On average, Opportunity Zones have a poverty rate of 31 percent and a median household income equal to 59 percent of area median income.

Cities with large Black populations have a high percentage of their state’s Opportunity Zones. For example, Detroit, with 6.7 percent of Michigan’s population, has 24 percent of the state’s 288 zones, and Baltimore, with 10 percent of Maryland’s population, has 28 percent of Maryland’s 149 zones.

Opportunity Zones seek to attract private capital to disinvested communities, with a deliberate focus on economic growth. To qualify for the tax incentives, investments are statutorily required to support: a) the expansion of new or existing businesses; b) new construction or substantial rehabbing of commercial, residential, or mixed-use real estate projects; or c) infrastructure projects. The resulting increase in economic activity is intended to create jobs, opening the door for partnerships between Opportunity Zones projects and community programs such as Registered Apprenticeship.

This fact sheet provides an overview of Registered Apprenticeships in Opportunity Zones, including strategies, best practices, and resources for expanding programs in these areas.