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 Stockton 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
Downtown Stockton is the historic district of the city. With Stockton’s history dating back more than 90 years, the downtown area consists of numerous historic structures offering unique mixed-used buildings with ground floor retail space and vibrant architecture. Downtown Stockton’s major employers include the City of Stockton and San Joaquin County. With a rise in demand for the live/work/play atmosphere, downtown Stockton is home to two incubator coworking spaces, a shared artist space, local brewery, and many restaurants. The downtown area attracts thousands of visitors each year with the major events and sports events at the Stockton Arena and Stockton Ballpark. Downtown Stockton also offers water access for recreational use at the Downtown Marina and for industrial uses at the inland Deepwater port at the Port of Stockton.
South Stockton is known for the industrial, manufacturing, and logistics sectors, but also encompasses a large residential population with some commercial retail. Major employers include the O’Reilly Auto Parts, World Class Distribution, Inc., and the new Amazon distribution center. This area also includes the Stockton Metropolitan Airport, which offers air cargo transportation, as well as domestic passenger flights to Las Vegas, San Diego, and Phoenix. The San Joaquin County Fairgrounds is also located in South Stockton which attracts thousands of visitors per year for various year-round events.
East Stockton consists largely of industrial and agricultural uses. Area employers include Coca-Cola Bottling Co. and other distribution and manufacturing facilities. East Stockton also offers rail access for cargo transportation at Burlington Northern Santa Fe Railroad Intermodal Facility.
The Midtown Opportunity Zones clusters include the University of the Pacific and the California State University Stanislaus, Stockton Center, enrolling approximately 5,500 students per year pursuing degrees in Business Administration, Pharmacy, Dentistry, Health Science, Engineering, among many others. The nearby major employer includes the St. Joseph’s Medical Center along California Street and Harding Way located along the educational and medical district in University Park. Midtown also includes the Miracle Mile, an outdoor shopping center with quaint local shops, and is considered a visitor destination.
The North Stockton Opportunity Zone offers high traffic and easy access along major corridors. This area offers a mix of uses and is comprised of retail shopping centers, multi-family and single-family residential, as well as, K-5 and higher education institutions. Humphrey’s University is a non-profit and independent institution of higher education located at the center of the North Stockton Opportunity Zone and is one of California’s oldest universities. Humphrey’s enrolls students pursuing Associates, Bachelors, Masters and Juris Doctor degrees in accounting, business administration, early childhood education, legal studies, and more. Major retail stores along Pacific Avenue and Hammer Lane include Chuck E. Cheese’s, CVS, Save Mart, Smart & Final, Skechers Factory Outlet, and Michaels.
With the approval of 19 Opportunity Zones, the City of Stockton 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 Stockton offers – whether that is taking advantage of Stockton’s unique geography, investing in business and our workforce, or building the infrastructure that will make our city more livable and sustainable.