Property investment can become more lucrative while lifting up distressed communities through a strategy granting tax breaks to spur development.

Pittsburgh’s Mastermind Group heard a broad overview of “opportunity zones” as designated by the federal government, known in Pennsylvania as Keystone Opportunity Zones. “The spirit here is that they are trying to bring jobs, and bring new life into those areas,” said David Kerin, of Grossman, Yanak & Ford, an accounting and consulting firm based in downtown Pittsburgh.

Opportunity zones allow investors to reduce or eliminate tax on capital gains, which are profits reaped from the sale of another asset. Long-term capital gains are taxed up to 20 percent at the federal level. Kerin pointed out there’s a low barrier for entry to those who wish to acquire property within a Keystone Opportunity Zone. “Almost anyone can participate in the program, any entity that is realizing a capital gain,” Kerin said. But he added that those who participate have to take great care in ensuring they follow state and federal rules outlined for opportunity zones, or risk becoming ineligible.

In Pennsylvania, more than 2,000 parcels have been designated as opportunity zones. There are programs throughout the country that operate under federal guidelines.