Resources

Webinar to discuss recently issued proposed regulations for new Opportunity Zone incentive

published in McAfee & Taft Business Alert | October 19, 2018

By Cheryl Vinall Denney

Today, the U.S. Treasury Department issued highly anticipated proposed regulations governing the new Opportunity Zone tax incentive. The Opportunity Zone tax incentive was created as part of the Tax Cuts and Jobs Act of 2017 at the end of last year. A copy of the proposed regulations can be found here.

McAfee & Taft will be hosting a free webinar for interested parties on Tuesday, November 13, 2018, to provide an overview of the Opportunity Zone incentive, discuss the recently issued regulations, and answer questions. Please be sure to check your email next week for more details and registration information.   

About the Opportunity Zone Incentive

The Opportunity Zone incentive is an economic development tool designed to incentivize eligible taxpayers to make investments in businesses and real estate developments in low-income census tracts that have been designated as Opportunity Zones. Instructions for accessing a map of Opportunity Zones can be found here. 

Investments in Opportunity Zones must be made using a three-tier structure with the taxpayer investing in an Opportunity Zone Fund, and the Opportunity Zone Fund investing in a real estate project or business located within an Opportunity Zone. Taxpayers receive three benefits for making the investment in the Opportunity Zone Fund:

  1. Deferral of federal taxes on any recent capital gains until December 31, 2026;
  2. Reduction of up to 15% of such taxes if the investment in an Opportunity Zone Fund is held for five or seven years; and
  3. Pay as little as zero taxes on profits from an Opportunity Zone Fund if the investment is held for more than 10 years.

For more information about the Opportunity Zones tax incentive or other state and federal tax incentives, contact your McAfee & Taft Economic Development, Tax Credits and Business Incentives attorney or call Cheryl Denney at (405) 552-2295 or Ryan Anderson at (405) 270-6087.