SAN FRANCISCO (PRWEB) December 19, 2019
The Treasury Department’s updated tax-related guidance for opportunity zones (OZ) Thursday was greeted as an important development for the community development incentive by Michael J. Novogradac, CPA, and managing partner of national accounting and consulting firm Novogradac.
Treasury released final regulations for the OZ incentive, combining the first and second tranches of proposed guidance that were released in October 2018 and April 2019, respectively. The OZ incentive was created during tax reform at the end of 2017 and allows investors to defer paying taxes on gains they invest in qualified opportunity funds, which invest in low-income areas designated as OZs.
“Treasury’s guidance provides clarity for investors, which will likely lead to more investment in neighborhoods where it’s needed,” said Novogradac. “It’s particularly helpful that the regulations were released now, with time for them to be published in the Federal Register this month. The updated regulations provide clarity for investments in operating businesses and other beneficiaries of the incentive.”
The Novogradac Opportunity Funds Listing is a rolling survey of qualified opportunity funds (QOFs) seeking third-party investors. As of Dec. 10, the 184 QOFs included in the survey had raised $4.46 billion. The pace at which QOFs have raised capital has increased substantially in anticipation of the year-end deadline to receive the maximum 15 percent reduction in capital gains, as well as the impending release of the regulations issued today. Novogradac will provide an update on QOF fundraising soon.
The Novogradac 2020 Opportunity Zones Conference will be April 23-24 in Long Beach, Calif. Novogradac provides OZ news, analysis and other information at http://www.opportunityzonesresourcecenter.com and in the Novogradac Journal of Tax Credits. Visit http://www.novoco.com for more information.
Novogradac began operations in 1989 and has grown to more than 600 employees and partners with offices in more than 25 cities. Tax, audit and consulting specialty practice areas for Novogradac include affordable housing, opportunity zones, community development, historic rehabilitation and renewable energy.