The Opportunity Zones initiative is not a government program. It is a once-in-a-generation initiative to lift Americans out of poverty and bring economic and community revitalization to the areas that need it most, particularly during the COVID-19 pandemic.
Created under the 2017 Tax Cuts and Jobs Act (TCJA), Opportunity Zones comprise 8,764 census tracts, nominated by State and Territorial executives and certified by the U.S. Department of the Treasury. The Opportunity Zones tax incentive is designed to spur economic development and job creation in these communities through preferential tax treatment for those investing certain eligible capital gains into Opportunity Zones through Qualified Opportunity Funds.
The White House Opportunity and Revitalization Council (Council), established by President Donald J. Trump through the signing of Executive Order 13853 on December 12, 2018, was formed to carry out the Administration’s plan to encourage public and private investment in urban and economically distressed areas, including Opportunity Zones. Chaired by the Secretary of the U.S. Department of Housing and Urban Development (HUD), Benjamin S. Carson, Sr., and led by Executive Director Scott Turner, the Council includes 17 Federal agencies and Federal-State partnerships. In April 2019, the Council released its Implementation Plan, assigning member agencies to specific work streams and tasking each with certain objectives. Last year, the Council presented to President Donald J. Trump its one-year report, which summed up the 180 subregulatory and regulatory action items taken by Council member agencies through December 2019, to encourage public and private investment in urban and economically distressed areas, including Opportunity Zones; and help State, local, and tribal governments to better identify, use, and administer Federal resources in these areas. The one-year report to President Trump also made 43 additional subregulatory, regulatory, and legislative recommendations.
This is the third report issued by the Council as required under Executive Order 13853, and outlines best practices that could be integrated into public and private investments in urban and economically distressed communities, including Opportunity Zones, in order to increase economic growth, encourage new business formation, and revitalize communities. Qualified Opportunity Fund investments defy easy categorization. Just more than two years since passage of the TCJA, the Council has seen Opportunity Zone investments in housing, grocery stores, energy, retail establishments, agriculture, entertainment, technology, farming, and more. Many of these investments are uniquely tailored to fit the needs and potential of particular communities.
This report is written with the goal of identifying those best practices in the public, non-profit, and private sector that provide the greatest benefit to the fifty-two million Americans who live in economically distressed areas, including the thirty-five million who reside in Opportunity Zones
Qualified Opportunity Zone Funds: Structuring and Implementing Tax-Advantaged Fund Transactions
Our team understands the unique aspects and challenges associated with performing operational due diligence review of both private equity and real estate asset classes. Analyzing fund documents, financial statements, evaluating operational risks concerning valuation methodologies, pricing documentation and illiquidity.
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