The Opportunity Zone program was established in 2017 through the passage of the Investing Opportunity Act, which creates powerful tax incentives for investing in economically-distressed communities by allowing investors to roll over capital gains from real-estate and non-real estate investments into investments in these areas. There are more than 8,760 Opportunity Zones located in 50 states, DC and five U.S. territories as of 2020. When combined with other tax incentive programs such as low-income housing, historic and new markets tax credits, the Opportunity Zone program can be used to further enhance after-tax investment returns.
Olshan’s multi-disciplinary team can assist investment managers with their transactions in Opportunity Zones, real estate developers acquiring or developing real property in an Opportunity Zone or a business owner or investor looking to maximize the available opportunities under this program. Olshan brings together all of the legal disciplines needed with our tax, securities and real estate lawyers who can help structure and execute your transaction as well as provide an economic analysis of all available tax benefits. We also have extensive contacts with accountants, brokers, consultants, bank investors experienced in tax-advantaged investing.
The Community Development Financial Institutions Fund of the IRS administers the Opportunity Zone program and provides useful resources and guidance on its administration.