Opportunity Zones Continue to Excite Investors
December 28 2018 marked the end of the public comment period regarding the proposed Treasury regulations for Opportunity Zones. At last count, 145 comments had been received from representatives of housing agencies, development councils, real estate associations, local municipalities, property investors and private citizens nationwide.
A lot of questions remain unanswered…
How will an Opportunity Zones work alongside other tax incentives, like the Low Income Housing Tax Credit and New Markets Tax Credit;
Will the program be open to Employee Stock Ownership Plans (ESOPs);
Will they include clean-fuel transportation vehicles, like barges, that are docked inside OZ’s but deliver goods outside of them;
How to guarantee real economic benefits get built into low-income communities such as hiring local labor for new businesses and making sure investors of color get adequate access to new contracting opportunities;
Despite the uncertainty, investors have already begun pouring money into Qualified Opportunity Funds in anticipation of capitalizing on the benefits promised by the Opportunity Zones. The clock is ticking as 2019 is the last available window to take advantage of the tax savings offered by the Opportunity Zones.