Live at the Heart

Artifact x Opportunity Zones

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O-ZONES

The Tax Cuts and Jobs Act of 2017 has created a once-in-a-generation tax savings opportunity to encourage investment in specially designated geographic districts called Opportunity Zones.

Artifact has been developing in and around these zones in Harlem for nearly a decade. We have the local expertise and community support necessary to develop projects that will not only provide outsize returns for investors but will also enhance the areas they serve.

Want to learn how you can benefit from Opportunity Zones with Artifact? Contact us here.

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How Opportunity Zones Work

What Are Opportunity Zones?

Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.

This new community development program encourages long-term investments in low-income urban and rural communities nationwide by granting investors tax incentives, including tax-free income, to re-invest their unrealized capital gains in these areas.

What Are the Tax Benefits?

Temporary Tax Deferral

A temporary tax deferral for capital gains reinvested in a business or fund located in an opportunity zone. (Deferred gain must be recognized at sale or by December 31, 2026)

Step-Up In Basis

A step-up in basis for capital gains reinvested in an Opportunity Zone project. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone business is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation. Deferred tax payment to be reserved and paid by fund when due.

Permanent Exclusion

A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone business, if the investment is held for at least 10 years. (The exclusion applies to the gains accrued from an investment in the business, not the original gains.) In New York, the state will also follow the federal treatment.

Source: Economic Innovation Group (PDF)

How Do I Get Involved in O-zones?

Artifact is actively developing projects in two of New York State's Opportunity Zones—in the Hamilton Heights and Manhattanville neighborhoods of Harlem.

Qualified investors can deploy capital gains-originated investment against Artifact's social-forward development strategy while benefiting from the program’s unique tax advantages.

Contact us to learn how you can invest in socially responsible community development in areas of Harlem that justify concentrated investment even without these incentives.

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Manhattanville Opportunity Zone

Artifact is developing several projects in the Manhattanville neighborhood of Harlem, a qualified Opportunity Zone. Our pipeline in the area includes over 300,000 square feet of residential, mixed-use and co-working space within the zone.

Columbia University x Manhattanville

Artifact’s expansion into Manhattanville coincides with a massive expansion project in that area by Columbia University, including new administrative and classroom buildings and high technology research labs.

These expansion plans are concentrated to the northern end of the neighborhood, taking advantage of the low density of the area and its industrial nature. Collective Spaces Manhattanville is being developed in that core of the expansion.

Columbia has long been a major catalyst for neighborhood advancement as it attracts individuals with above average resources as well as businesses developing out of and supporting that university population.

The Columbia expansion will continue to support significant growth in area rents for years to come.

This video was produced by Columbia University to introduce its new Manhattanville campus, designed to “bring together a diversity of academic disciplines to address the great questions facing our society while welcoming the wider community to experience a shared space for civic life.”

Explore the Area Further

Click the images below to learn more about the Columbia Manhattanville project, and visit http://Manhattanville.Columbia.edu