The Tax Cuts and Jobs Act (“TCJA”) was passed in December 2017 to lower taxes and stimulate the U.S. economy.  The Opportunity Zones program is a community development program established by the TCJA to encourage long term private investment in America’s underserved communities. The program allows private investors to invest in designated areas while generating meaningful capital appreciation and substantial tax benefit.

• Qualified Opportunity Zones (“QOZs”) were nominated by the Chief Executive of each state
  and approved by the U.S. Department of the Treasury in April 2018
• Over 8,700 QOZs have been designated and designation is valid for 10 years
• Must develop or “substantially improve” acquisitions of land and/or assets on a 1:1 basis within a 30 month period

Investors may invest in QOZs through Qualified Opportunity Zone Funds using capital gain dollars to access tax benefits through:

1. CG Deferral: Earlier of disposition date or 12/31/2026
2. Reduction or Partial Abatement of Deferred Gain: 10% (5 year hold)/ 15% (7 year hold)
3. Tax Free Returns on QOZ Investment: Upon disposition of relevant interest after 10 year hold