Real estate development is a natural focus for the QOZ program. Given the valuable tax incentives available to investors and the expected investor demand for real estate investments under the QOZ program, the program will create financing opportunities for real estate developers and sponsors.

Our attorneys can show developers the optimum structure to set up to take advantage of the tax benefits and how to leverage the investments with programs such as New Markets Tax Credits, Pilot Increment Financing and Industrial Development Agency benefits.

Investors are eligible to receive tax benefits on capital gains invested in QOZs through special funds. Specifically, investors can receive a temporary deferral of capital gains; permanent exclusion of a portion of capital gains for investments held five to seven years; and permanent exclusion of post-acquisition gains for investments held for 10 years.

We can help investors establish a self-directed QOF or review a potential investment in a QOF

Communities that are designated as Qualified Opportunity Zones will benefit from the requirement that 90% of the assets in a “Qualified Opportunity Fund” must be invested in “Qualified Opportunity Zone Property,” which includes businesses and properties located in Qualified Opportunity Zones. As a result, this program should inject some much needed capital into low-income communities.