IRS Extends Like-Kind and Qualified Opportunity Zone Deadlines
The 45-day and 180-day requirements for investing in QOZs and like-kind properties were causing concern for taxpayers given the current state of the country as a result of the coronavirus pandemic. In recognition of this, the IRS extended the deadline to July 15, 2020, for several types of returns or other filing obligations which were due to be performed on or after April 1, 2020, and before July 15, 2020.
House Republicans Introduce Bill to Extend Opportunity Zone Program
Representative Denver Riggleman (R-VA) and five cosponsors have introduced a bill dubbed The Opportunity Zone Extension Act (H.R. 6513) that would extend the opportunity zone program from 2026 to 2030, allowing investors additional time to invest in qualifying communities.
Deriving Maximum Benefit from Rural Opportunity Zones
In rural Opportunity Zones, revenues from an improvement of a single property will not significantly, nor beneficially, move the needle on property tax revenues. Solar panel farms in underserved, rural Opportunity Zones offer an attractive package of economic development, significant increases in local property tax base, direct payments to landowners above "farming margin," lower electricity costs to all ratepayers, and reductions in environmental issues.
How OZs Can Support Affordable Housing Creation, Preservation
State housing finance agencies (HFAs) use qualified allocation plans (QAPs) to promote their LIHTC priorities and practices. By providing specific set-asides, directives for the location of affordable housing using LIHTCs and other preferences, HFAs can use QAPs to incentivize investments in OZs.
Opportunity Appalachia Announces Selection of 16 Projects to Participate in a Program to Bring Jobs, Business Support, and Investment to Central Appalachia
Opportunity Appalachia received 56 OZ project proposals from Central Appalachia which were submitted by 42 project sponsors. From this project pool, 16 OZ projects have been selected for participation. Opportunity Appalachia will now provide technical assistance to selected projects to support the development of investment prospectus, structuring of project financing, market research, operations planning, and investor outreach.
COVID-19: Impact on Financial Markets and Opportunity Zones
Craig Bernstein, principal of OPZ Capital, which launched the OPZ Capital Opportunity Zone Fund in 2018, is the guest on this episode of Opportunity Zones podcast. He discusses opportunity zones and what the pandemic means for their future, as well as the overall economic shift the virus has caused at it spreads across the United States. Find the episode and a transcript here.
The Future of Opportunity Zone Funds Could Be in Renewable Energy
Opportunity Zone funds that focus on solar and wind energy businesses have the potential to yield comparable returns to real estate focused funds. Beyond the potentially attractive returns, renewable energy businesses developed within Opportunity Zones can drive powerful positive differences for the communities the legislation was intended to help.
What COVID-19 Means For Opportunity Zone Projects
Opportunity Zone project managers have numerous tools at their disposal to protect their investments during the COVID-19 crisis. The final OZ regulations released in December allow for leniency regarding investment deadlines and Opportunity Fund requirements in times of financial strain, meaning the public health crisis is not a death sentence for OZ projects and may result in more OZ investments than before.
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