Client Alert: Opportunity Zones: A New Program Incentivizing Private Real Estate Investment in Designated Areas

The Tax Cuts and Jobs Act enacted on December 22, 2017 unveiled new tax incentives designed to encourage long-term private investment in certain designated areas throughout the United States.

The “Opportunity Zones” program (the “Program”), codified in Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code, allows investors to receive three significant tax benefits in exchange for investing in funds (“QO Funds”)1 newly created to invest at least 90% of their assets in businesses and real estate within low-income communities designated as Qualified Opportunity Zones (“QO Zones”).

Investors should be aware of new tax benefits of investing in certain geographical areas. This Client Alert, authored by Real Estate Practice Group member Chad Richman details these benefits.

Click the button below to read the full alert.