By Kate McCurry, John I. Sanders, and Ali Fenno
Last year, Congress passed the Tax Cuts and Jobs Act (the “Act”), which contained a tax incentive program (the “Opportunity Zone Program”) to encourage long-term investments in low-income communities identified as “opportunity zones” by state governments. Specific details of the program were left to be fleshed out by the Treasury Department, leaving the financial industry anxious for proposed regulations that would determine the strength of the opportunity zone incentives. Those proposed regulations (the “Regulations”) were released last Friday. Under the Act, the Opportunity Zone Program allows investors to:- Defer paying taxes on gains recognized from the sale of assets if those gains are re‑invested in qualified opportunity funds (“QOFs”); and
- Exclude from the calculation of taxable gross income any gains recognized from investments in QOFs that are held by the investor for at least ten years.[1]
Disclaimer
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.
