In December 2017, Congress passed the Tax Cuts and Jobs Act, which, among many other wide-ranging tax reforms, established a new program that promotes long-term investments in low-income areas, with the goal of stimulating development in these economically distressed communities.This program allows taxpayers to re-invest private capital gains and postpone or decrease federal capital gains taxes in low-income communities designated as “Qualified Opportunity Zones”. Our cross-disciplinary team of real estate, tax and corporate attorneys are well-positioned to help investors, developers and fund managers determine the right approach and how to qualify for the program’s incentives, all while complying with the program’s legal requirements.

While funds, developers and high net worth individuals may realize the most benefits from the new legislation, Opportunity Zones are intended to be accessible to all classes of investors and businesses, and not just select developers and properties. In addition, there is no cap on gains made on investments in an Opportunity Zone. We offer our clients many insights – from structuring long-term real estate and business investments, to fund formation, to reviewing tax requirements that optimize the full extent of the program.

Polsinelli’s experienced attorney team focuses on economic development initiatives and has studied the Opportunity Zones program from when it was signed into law. We use our experience with federal, state, and local development incentives, as well as tax credit programs, to assist clients in structuring deals with the most economically-favorable terms.Our team considers it an imperative to stay apprised of regulatory updates that may affect our clients’ investment goals, and we continue to monitor this Act closely as it evolves over time.

A Qualified Opportunity Zones Map may be found here.