Invest in open access fiber broadband networks for communities, and earn competitive, tax-advantaged returns.
Our focused, technology-powered strategy screens and selects attractive Opportunity Zone investments based on your goals.
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Fiber-optic broadband networks are the 21st century bridges to economic opportunity: critical for the economic and innovation output of our nation, and the essential foundation for every future-ready community.
$130 billion is the estimated investment necessary to connect 19 million Americans without fixed broadband service at threshold speeds, and to upgrade old copper lines to the fiber optic infrastructure essential for powerful, reliable connectivity, smart city applications, and wireless technologies like 5G.
This calculator is meant to demonstrate the tax effect of specific structure and time decisions on different hypothetical returns using the below assumptions, and is not intended to represent expected performance of any specific investment, account or fund.
The calculations show an investor’s potential after-tax returns under different scenarios as selected by the user with the following assumptions. The calculations assume a timely investment of qualifying capital gains prior to December 31, 2019 in a qualified opportunity fund (“QOF”) sponsored by Neighborly (defined below) a minimum ten-year holding period (except as otherwise specified) and an annual target growth rate, between 8% to 22%. The calculations also include a long-term capital gains tax rate of 23.8% (federal capital gains tax of 20% and net investment income tax of 3.8%) and only consider tax at a federal level (not state or local).
A straight-line internal growth rate for the same underlying project (selected by user) is used in each case to simplify comparison. Tax payments (current, future and deferred) are deducted without consideration of the time value of money and there is no consideration of annual income allocations to an investor under tax rules (which may create current tax liability for the investor) or of any periodic distributions of income. At the end of the tenth year of the holding period, the investor’s investment in the equity of the QOF is sold and the capital gains on the appreciation of such equity investment in the QOF itself is taxed at a rate of 0%.
These calculations were prepared in accordance with our understanding of Section 1400Z-2 of the Internal Revenue Code of 1986, as amended, and the proposed QOF tax regulations as announced by the Treasury in October 2018 and April 2019 (the “QOF Guidance”). The QOF Guidance is subject to change, clarification and/or revisions at any time. While this calculator endeavors to represent an accurate view of the tax rules, this calculator does not purport to offer tax advice in any way. You should not construe the contents of this calculator as legal, tax, investment or other advice.
It is possible that an investment in a Neighborly fund designated as a QOF may fail to be treated as a QOF, an investor may be subject to penalties as a result of the QOF’s failure to so qualify and/or an investor’s investment may not otherwise qualify for the tax benefits of the QOF Rules. Potential investors are encouraged to read the relevant fund packet for additional detail regarding tax matters.
Case 1 - Neighborly QOF for 10 or more years
Case 2 - Non QOF structure for 10 or more years
Case 3 - QOF structure for only 5 years
Case 4 - QOF structure for only 7 years
Investment opportunities selected to maximize community impact and portfolio returns
Cross functional teams with career experience in finance, government, network engineering, and tech
Grassroots campaigns that drive network adoption and profitability before capital deployment
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