Opportunity Zones in Lakewood

The federal Opportunity Zone program was included in the Tax Cuts and Jobs act of 2017 and signed into law on December 22, 2017. The program is designed to provide tax incentives to investors who fund businesses in underserved communities.

Becky Newton
Economic Development Manager
6000 Main St. SW, 3rd Floor
Lakewood, WA 98499
(253) 983-7738

Email: BNewton
To email Becky Newton add her email handle before @cityoflakewood.us

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About Opportunity Zones
Why Invest in Lakewood?
Opportunity Zone Maps

About Opportunity Zones

The federal Tax Cuts and Jobs Act of 2017 was signed into law on Dec. 22, 2017. The Opportunity Zone program is included in that act. The Opportunity Zone Program is designed to provide tax incentives to investors who fund businesses in underserved communities. 

Investors may defer paying taxes on capital gains that are invested in Qualified Opportunity Funds. These Opportunity funds are invested in distressed communities which are designated as Opportunity Zones by the governor of each state. Up to 25 percent of the low-income census tracts in each state may be designated as Opportunity Zones.

For more information, please go to the Washington State Department of Commerce (DoC) Opportunity Zones page:

General Opportunity Zone Guidelines:

  • Investors may defer capital gains to 2026 on original investment;
  • Appreciation on invested funds is never taxed;
  • The latest date to invest is Dec. 31, 2026;
  • Capital Gains tax on the original investment is paid on 2026 tax return;
  • If held for five years, there is a 10 percent basis step up, and an additional 5 percent at seven years;
  • Once an investment is made, the investor has 30 months to improve the property and generate active income;
  • Investors cannot invest directly;
  • Investments must be made into a qualified opportunity fund within 180 days of realization.

Opportunity Fund

  • The fund makes the investment;
  • Investments may be in real property, buildings, equipment and related physical project expenses;
  • An individual may form a fund (LLC) but hold no more than a 20 percent interest in the fund;
  • 90 percent of all assets within any fund must be for/within an Opportunity Zone (there is penalty for non-compliance);
  • There are several national funds

For more information, please go to the Opportunities Zone Resource Center page:

Why Invest in Lakewood?

Lakewood is a young, thriving urban south Puget Sound city, possessing the core values of family, community, education, and economic prosperity.

We are strategically and conveniently located with easy access to Interstate 5, minutes away from the Port of Tacoma and a short drive to Sea-Tac International Airport or the Capital in Olympia.

Lakewood has a great educational system, strong business district, ample workforce, and numerous recreational activities. Business incentives include no local B&O tax, no development impact fees, and no added minimum wage requirement.

For more information, please visit our Developing in Lakewood page.

Opportunity Zone Maps in Lakewood

Lakewood has Three Opportunity Zones
The neighborhoods of Tillicum and Woodbrook
The Lakeview-Kendrick neighborhood (805) and the Springbrook neighborhood (806)