Perspectives: Opinions from our network of advisors, investors, operators and analysts on the risks and opportunities they see.
The US Treasury Department on April 17 issued its final clarifications on how the community development program known as “opportunity zones” will function, what kinds of projects qualify and how the generous tax breaks on offer will operate. The program, signed into law in 2017, allows individuals and businesses to shelter capital gains by investing in economically distressed communities that were chosen by state governors in 2018.
The latest guidance expands the types of development eligible for the tax credits from residential and commercial to include energy, infrastructure and various environmental projects. It also clarifies the deadlines for investing, in effect giving some investors an extra 180 days or until June 1 to take advantage of the tax benefits.