Pioneer Mine In Designated Opportunity Zone
The Eagle Group’s Pioneer Mine claims are in the Oatman, Arizona Opportunity Zone, providing investors with the ability to earn tax-efficient distributions as we scale and launch production. The Eagle Group has invested more than $4M over the last three years developing a mining approach for Pioneer and is now ready to scale and launch commercial production at the mine. Investors can elect to make a qualified opportunity zone investment to mitigate the tax impact of earnings from the mine over its projected 11-year useful life.
More detail on Opportunity Zones and how Arizona is leading the U.S. in Opportunity Zone Investments is included below:
Arizona’s Opportunity Zone nominations were submitted on March 21, 2018 and approved by the U.S. Treasury Department on April 9, 2018, making Arizona one of the first states in the nation to have its zones officially designated.
It was created under a provision of the Tax Cuts and Jobs Act, which was signed into law December of 2017. Under the program, investors who experience capital gains can invest that money into Qualified Opportunity Funds that spur development in designated, distressed census tracts known as Opportunity Zones. Doing so comes with tax benefits to the investors in addition to providing positive economic and social impacts within these communities. Eagle is currently exploring the various options that are available to us as a result of the Pioneer Mine being located in this Federally Designated Opportunity Zone. We have listed some of the program details below:
To have a qualified investment that is eligible for the tax incentives:
- The investment must be made through a Qualified Opportunity Fund. The fund must hold at least 90% of its assets in the property.
- Eligible capital gain must be reinvested into a Qualified Opportunity Fund (QOF) within 180 days of realization.
Tax Benefits for Investors
Tax on the initial realized capital gain is deferred and reduced depending on the length of time the investment is held.
- If an investment is held for five years, the taxable amount of the capital gains reinvested is reduced by 10%.
- If an investment is held for seven years, the taxable amount of the capital gains reinvested is reduced by 15%.
- If investment is held for ten years, capital gains made on the investment will not be taxed.