Opportunity Zone legislation just got better and clearer. Potentially, the legislation will become even more favorable in the future…
Below are the top highlights from the new guidance released on April 17, 2019:
- Opportunity Zones are now open for business(es)
- Integration is here and accountability is forthcoming
- A path for funds is emerging
- Favorable timelines for investment and reinvestment just alleviated a lot of risk
- Original Use is well defined, but with one loophole
The legislation was meant to spur investment and increase economic activity in the 8,000+ Opportunity Zones. Consequently, if an Opportunity Fund buys a building, it must substantially improve it, or, if the fund buys a piece of land, it can’t just sit on it.
Exactly 64 days passed between the Valentine’s Day IRS public hearing and the release of this new guidance. With the next hearing set for July 9th in Washington, D.C., mid-August would be the earliest time to expect the next round of updates, if they are to come quickly. For now, there should be enough guidance available to make a positive impact in communities and economically.
View the entire FORBES article HERE.
View the Newley Released IRS Guidance HERE.