Horizons Spring/Summer 2019

INDUSTRY UPDATE REAL ESTATE

Opportunity Zones Have Potential to Bring Growth, but Pose Lingering Questions by Tim Anderson, CPA

I t’s been widely covered in the media and throughout the real estate industry. The opportunity zones tax incentive provisions that were enacted as part of the Tax Cuts and Jobs Act have stirred interest and growth throughout communities across the country. Curiosity about opportunity zones has been steadily increasing over the past year and the tax incentive that was at first paid little attention has made front-page news and generated an abundance of questions from individuals across many different industries. Those in the real estate industry, in particular those who have been working with other

federal programs for many years like Low-Income Housing Tax Credits, Historic Tax Credits, New Markets Tax Credits and Renewable Energy Tax Credits, have been among the frontrunners in dissecting and learning as much about the program as possible. The opportunity zone program is designed to encourage long-term investment in certain designated low-income communities to spur economic growth. One of the provisions, Section 1400Z-1, allowed for the designation of around 9,000 low-income communities as qualified opportunity zones (QOZ).

36 Opportunity Zones have Potential to Bring Growth, but Post Lingering Questions