Early on in 2018, one of the major new items included in the Tax Cuts and Jobs Act of 2017 was The Opportunity Zones Program. After the initial pomp and circumstance died down, the Opportunity Zones program became a success for low-income urban and rural communities nationwide. According to the Novogradac & Company LLP’s Opportunity Zone Resource Center a cumulative $37.62 billion in equity was raised through Dec. 31, 2023 with $3.53 billion in 2023 alone. However, without an extension or permanent implementation, investors and developers began to look elsewhere.
Now with the re-election of President Trump and the Opportunity Zones program being one of his signature tax programs, many Opportunity Zones attorneys, accountants, lobbyists and consultants feel that the Opportunity Zones program appears to be poised to get that extension or permanent implementation.
Just a reminder that the Opportunity Zones program permitted taxpayer investors to defer payment of a discounted tax on a capital gain for a period of time and then after investing the capital gain in an opportunity zone business or property for up to ten years, be exempt from any tax on the capital gain of the new investment.
Stay tuned!
If you have an impending capital gain, property or development project which may be subject to the Opportunity Zones program or would like more information, please contact your trusted R&E attorney or Adam R. Sanders, Member of the firm’s Transactional Department, who authored the above on The Opportunity Zones program.