Opportunity Zone Resource Center

The 2017 tax act (Pub. L. No. 115-97) introduced a new program designed to encourage investments in low-income communities throughout the country that were designated as qualified opportunity zones (“Opportunity Zones”). The tax incentives for Opportunity Zone investors include:

  1. Harvesting current unrealized gains (whether short-term or long-term) on a tax-deferred basis until at most December 31, 2026;
  2. Stepping-up the basis on deferred capital gains invested in a Qualified Opportunity Fund (“Fund”) if the Fund investment is held for at least 5 years (10 percent tax savings) or 7 years (15 percent tax savings); and
  3. Eliminating tax on gain from the sale of the Fund investment if held for at least 10 years.

In October 2018 and again in April 2019, the Internal Revenue Service and the Treasury proposed regulations providing important guidance related to Opportunity Zone investments. These proposed regulations are quite detailed and complex.

The Dykema Opportunity Zone Resource Center (the “OZ Center”) is intended to help our clients and interested investors better understand the rules for Opportunity Zone investing by reporting on the latest developments. We regularly update the OZ Center with general news, policy positions, publications and links to public information relevant to our clients and interested investors. We encourage you to explore the OZ Center, visit us often to review new developments, and contact any of the attorneys listed under the Professionals tab should you have any questions.

To subscribe by email to Dykema's OZ Center Insights, please click here.

Dykema Insights & Press Releases
 

Internal Revenue Code
 

IRS Guidance: Treasury Regulations, Revenue Procedures and Notices
 

Other Agency Documents: Frequently Asked Questions, News Releases, Forms, Publications

Selected Comment Letters to Proposed Regulations

Tools and Resources
 

Publications, Presentations and Alerts
 

Sample Publicly Available Private Placement Memoranda for QOFs
 

Conferences and Events
 

State Developments