The Investing in Opportunities Acts proposes a new solution to encourage economic growth and job creation, with incentives to private capital to reinvest those dollars in communities like Vallejo through Opportunity Zones. Opportunity Zones offers investors three tax incentives for putting their capital to work:
1. A temporary deferral: An investor can defer capital gains taxes until 2026 by putting and keeping unrealized gains in an Opportunity Fund. 2. A reduction: The original amount of capital gains on which an investor has to pay deferred taxes is reduced by 10% if the Opportunity Fund investment is held for 5 years and another 5% if held for 7 years, for a total of 15%. 3. An exemption: Any capital gains on investments made through an Opportunity Fund accrue tax-free as long as the investor holds them for at least 10 years. For investments maintained longer than 10 years and upon a sale or disposition of the investment, the investor is allowed to elect the basis in the investment to quality to the fair market value of the investment.
To qualify for these incentives, investments must be made through a qualified Opportunity Fund – a corporation or partnership organized to invest in designated Opportunity Zones and holds at least 90% of its assets. Note: The U.S. Treasury will provide rules and guidelines on how to become certified as a qualified Opportunity Fund. Check their website for more details.
Approved census tracts
Historic Downtown and Waterfront
Vallejo’s history dates back nearly 200 years and has twice served as the Capitol of California. The downtown historic core and waterfront consist of numerous historic structures offering unique mixed-used buildings with ground floor retail space, vibrant architecture and high-density residential development opportunities.
Downtown Vallejo’s major employers include the City of Vallejo, Kaiser Permanente and Sutter Health Group. With a rise in demand for the live/work/play atmosphere, the downtown & waterfront areas are quickly gaining interest and have become home to the recent Cal State Maritime Anchor Center, shared artist spaces, local brewery, and restaurants.
The City's Vallejo Station and Ferry Terminal offer BART linkage and high-speed ferry services to downtown San Francisco and have served as a model for the rest of the Bay Area, helping make Vallejo a transportation and commuter hub for the North Bay with over 1.2 million ferry riders annually. Six Flags Marine World, restaurants and the Downtown Farmer's Market help make Vallejo the vibrant community it is today.
Established in 1854, Mare Island Naval Shipyard was the West Coast's first shipyard. Decommissioned in 1996, Mare Island is now home to more than 300 homes, 100 businesses and more than 3,000 jobs and has become an industrial, commercial and residential engine for the Bay Area.
This central corridor provides access to SolTrans rapid transit and commuter access to the El Cerrito BART station in 20 minutes. Strategically located on Interstate 780, this Opportunity Zone presents tremendous logistics advantages.
These contiguous Opportunity Zones follow the Highway 29 arterial and link directly to American Canyon on the north side of Vallejo. This area is situated 15 minutes from downtown Napa and serves as the Gateway corridor to the Napa Valley.
With the approval of 6 Opportunity Zones, the City of Vallejo has identified a number of shovel-ready opportunity sites and projects – ranging from multifamily housing developments and land parcels, to industrial business park developments, to early-stage entrepreneurial incubators.
The following page articulates the abundance of opportunities that Vallejo offers – whether that is taking advantage of Vallejo’s unique geography, investing in business and our workforce, or building the infrastructure that will make our city more livable and sustainable.