Opportunity Zones and Qualified Opportunity Funds
The 2017 Tax Cuts and Jobs Act (TCJA) established the Opportunity Zone program, a valuable new tool that offers significant tax incentives for long-term investments in economically distressed communities. Real estate developers, venture capitalists and entrepreneurs – or anyone who has recently generated a significant capital gain – should take note of the extraordinary tax advantages available to both investors and fund operators.
Recognizing the game-changing benefits of the new program, Much has assembled a dedicated team of real estate, tax, securities and corporate attorneys to advise clients on investing in opportunity zones. We provide strategic counsel for those considering 1) reinvesting capital gain in a Qualified Opportunity Fund (QOF), 2) forming a QOF in connection with the redevelopment of a property or formation of a business enterprise within an opportunity zone, or 3) creating a fund and raising capital to invest in multiple assets within an opportunity zone.
The tax incentive structure for opportunity zone investments is complex and continues to evolve with ongoing regulatory developments. Our attorneys regularly monitor these updates and can help developers, business owners and investors structure economically favorable deals that fully capitalize on the benefits of the Opportunity Zone program. We provide guidance on all aspects of a project, including compliance with the current IRS Code and Treasury Regulations.
Approximately 8,700 opportunity zones were created under TCJA, many in neighborhoods bordering already developed or developing communities. View additional resources, including an opportunity zones map, on the CDFI Fund website.