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Posts tagged "qualified opportunity zones".

We have now received our second round of regulations interpreting Section 1400z-2, also known as the investment in Opportunity Zones section of the Internal Revenue Code. In our previous posts, we have provided background and tracked important developments with the program. Now and in future posts, we will highlight finer points that stakeholders should be aware of when considering the program.

This is the third post in a series of articles diving into the new “Opportunity Fund” program. In our first post, we described the general framework for the new Opportunity Fund program which you can find here. In the second post, we discussed the tax benefits to taxpayers who invest in Opportunity Funds. Now, let’s look at the funds themselves.

What are Qualified Opportunity Funds?

Qualified Opportunity Funds are investment conduits that deploy equity capital to specific types of property which are located in Qualified Opportunity Zones. Sounds simple enough! Let’s unpack this and keep track of the definitions.

This is the first feature in a series of articles wherein we will dive into the new “Opportunity Fund” program.

The recently passed Tax Cuts and Jobs Act (TCJA) is most widely known for changing corporate tax rates, limiting the mortgage interest and state deduction for individuals, and for providing the qualified business income pass-through deduction. However, the TCJA also created a significant new economic development program, “Qualified Opportunity Zones,” that encourages private investment in businesses, projects and commercial property located in zones in every state and in each U.S. territory.