Opportunity Zones are a compelling new tool for investors, asset owners, asset managers and communities.
Enacted as part of the Tax Cuts and Jobs Act of 2017, Opportunity Zones are designed:
To drive investment to designated underserved areas (Opportunity Zones)
To promote the sale of capital assets and the reinvestment of capital gains proceeds
Through certified investment vehicles (Opportunity Funds)
Into qualified investments, including real estate (Opportunity Businesses)
To provide significant tax advantages to investors
To produce beneficial community development and Impact in the designated Opportunity Zones
It is anticipated that by the end of 2018, the Treasury Department will issue initial program guidance and clarification for the Opportunity Zone Program, with final guidance expected in 2019. What we know for certain is that:
Opportunity Zones are currently designated. Click here to view the Opportunity Zone Eligibility Tool
Investments must be made through qualified Opportunity Funds
A series of capital gains deferrals and/or tax breaks can be achieved over time, with the largest breaks designed to encourage patient, long-term investment in the underserved communities that comprise the Opportunity Zones
Certain investment types are prohibited
Opportunity Zone Team
At Womble Bond Dickinson, we have a full-service Opportunity Zone Team comprised of members from our industry-first and award-winning Impact Business Group that offers comprehensive services to address each aspect of the Opportunity Zone process. Whether you are a fund manager, an asset owner or manager, an investor, or seeking to receive investments, we can design a custom solution for you.
Opportunity Zone tax incentives are still attractive to investors, but not without strategic planning. Since the Tax Cuts and Jobs Act of 2017, we've assisted with numerous Opportunity Zone investments nationwide. If you have questions about which localities qualify, deferring capital gains, or the Opportunity Zones Program in general, we can help.
We have a full-service OZ Team with tax, real estate, and corporate attorneys who work together to address each aspect of the Opportunity Zone process. Based on our practical experience with these investments, we can create a plan that suits your exact tax needs and financial goals.
Our Opportunity Zones practice is part of a significant, firm-wide effort to collaborate with impact-focused businesses and investors. Many OZ Team members are also part of our Impact Business Group and are adept at structuring investments to meet social and environmental goals. We've represented all parties in Opportunity Zone investments, including fund managers, asset owners and managers, investors, and clients seeking to receive investments. With vast experience in this area, our attorneys frequently get asked to write and present on the Opportunity Zones Program and legislative developments. Some of this content is publicly available on our OZ Hub Page.
Legal Support for Opportunity Zone Ventures
Investment and fund services
Fund formation for Qualified Opportunity Funds
Opportunity business investments (including start-ups)
Tax structuring
Securities offerings and compliance counsel
Transactional support
Asset Purchases and Sales (including real estate)
Transaction documentation
Environmental, Social, and Governance (ESG) services
Impact and ESG consulting: policy development and internal training
Impact and ESP reporting: designing and measuring KPIs, ESG dashboards, impact reports for stakeholders, etc.
Need legal advice and guidance in opportunity zones?
Our team is able to help provide solutions to you and your organization. Browse through our lawyers and professional staff to find the right attorney near you.
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