As referenced in our client alert on June 13, 2018, the Tax Cuts and Jobs Act created a new tax incentive program that allows taxpayers to defer, and in some cases, permanently exclude, taxable gains by redirecting those gains into investments in specific population census tracts in economically-distressed communities designated and certified by the United States Department of Treasury as "Qualified Opportunity Zones" (QOZs). The Qualified Opportunity Zone program is designed to spur economic development in QOZs by attracting private investment with tax incentives that build on and can be used together with, incentives provided under existing community-development programs such as New Market Tax Credits and Low Income Housing Tax Credits.
On June 18, 2018, the United States Department of Treasury certified and designated census tracts in those states and territories that had not previously been designated and certified as QOZs. As a result, QOZs have now been designated and certified in every state, five United States possessions and the District of Columbia.
An interactive map of all designated QOZs can be found here.
Many of the details concerning the requirements and procedures of the Qualified Opportunity Zone program itself are still uncertain. However, the United States Internal Revenue Service (IRS) is expected to provide additional details and guidance in late summer of 2018. Parker McCay will continue to monitor guidance from the United States Department of Treasury and the IRS and will provide updates on new developments.
If you would like any additional information about how to take advantage of the tax incentives available under the Qualified Opportunity Zone program, please contact the attorneys in Parker McCay's Corporate and Public Finance departments at any time.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.