Recently enacted by the Tax Cut and Jobs Act of 2017, the Opportunity Zones is a tax incentive program where individuals, partnerships and other entities can delay paying taxes on certain realized capital gains. Taxes may generally be deferred until December 31, 2026, with certain exceptions. This program was intended to spur economic development and attract new types of investments in low-income communities similar to the New Markets Tax Credit program. The investments are required to be in the form of equity and taxpayers must invest their capital gain through Opportunity Funds. This program pairs well with other tax incentive programs and can be twinned with Low Income Housing Tax Credits, New Markets Tax Credits and Historic Tax Credits, among other incentives. Proper implementation of this program requires counsel to have a thorough understanding of the tax laws and the creativity to assist clients in multiple facets of a projects.
Our firm has deep experience working with both straight-forward and complex financing transactions taking advantage of state and federal programs, such as the Opportunity Zones Program. NP Law has been on the forefront of the Opportunity Zones Program and has served as thought leaders in this area, sharing its experiences and knowledge in this area on multiple panel discussions. NP Law works closely with its clients to help structure their Opportunity Zone Businesses and Funds and any other services that may be needed.
Among Our Services:
- Transaction structuring including the creation of any required special purpose entities.
- Analysis of and advice on the tax implications of structuring for multiple parties.
- Review of appropriate transaction documents including documents for the equity investor’s equity contribution.
- Provide overall structuring advice with respect to formation of Opportunity Funds and related investments including negotiation of all documentation for same.
- Issuance of required tax opinions.