Brownwood, Texas is designated as an Opportunity Zone by the State of Texas, making it an attractive community for investors, allowing investments in long-term projects in exchange for reduced or eliminated capital-gains tax burdens.
Benefits from investing in an Opportunity Zone are tied to investment longevity.
Investment Length |
Benefits Recieved |
|---|---|
Fewer than 5 years |
Deferred payment of existing capital gains until the date that the Opportunity Fund is sold or exchanged |
5-7 Years |
Benefits above +10% of tax on existing capital gain is cancelled |
7-10 Years |
Deferred payment of existing capital gains until December 31, 2026 or the date that the Opportunity Fund is sold or exchanged (whichever comes first). +15% of tax on existing capital gain is cancelled |
Greater than 10 Years |
Benefits on 7-10 years investment + investors pay no capital gains tax on the Opportunity Fund investment (investments are exempt from any capital gains beyond those which are previously deferred). |
In addition to its Opportunity Zone designation, BMDD offers additional incentives for investing in the downtown area. Incentives include the Building Improvement Incentive Program, which provides up to $20,000 in funds for the improvement of the appearance of Brownwood commercial buildings, tax abatements, low-interest loans, capital improvements for water, sewer, streets, and other infrastructure, and workforce training, all with streamlined permitting.