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Opportunity Zones in the New Tax Law

  • 1.  Opportunity Zones in the New Tax Law

    Posted 05-18-2018 08:01
    Edited by Rebecca Bice 05-18-2018 13:24
    As time wears on I am wondering if anybody is talking about or thinking about the Opportunity Zone Program in the new tax Law and how it might be used for preservation in Opportunity Zone areas. This was very much the discussion at the most recent Association for Enterprise Opportunity conference in Detroit and also at out State CDFI Conference in Albany. I don't think I have seen any discussion in preservation circles though I did miss the most recent State Preservation Conference in Albany.

  • 2.  RE: Opportunity Zones in the New Tax Law

    Posted 05-18-2018 15:49
    Hi Paul, @Andrew Potts addressed the Opportunity Zone Program and how it can be used for historic preservation in his Forum blog post Preservationists Must Act Now to Secure Big Benefits for Historic Neighborhoods. I know he was considering a follow up on some point.

    Melita Jureša-McDonald
    Information & Content Specialist
    National Trust for Historic Preservation


  • 3.  RE: Opportunity Zones in the New Tax Law

    Posted 05-19-2018 10:16
    This is the first I'm hearing about these opportunity zones. But it sounds like it's already too late!

    Is there a list of which places got a request in before the deadline? And once a zone is created somewhere, can anyone still in invest in those areas? Or do participants get locked in when the zone is selected?

    Meg Dunn
    Fort Collins CO

  • 4.  RE: Opportunity Zones in the New Tax Law

    Posted 05-20-2018 10:13
    It is my understanding that there are steps in the process and no one is too late. Yes, late for notifying your governor or getting places identified in your state, but not too late to create investment entities that funds can be invested in for preservation projects in Opportunity Zones. At least that's my understanding. 

    What I would like is to have someone explain to me how to create an investment vehicle that would be of use in preservation and at the same time provide a return to investors. Also how to recruit investors who would be eligible to take advantages of the tax benefits.

  • 5.  RE: Opportunity Zones in the New Tax Law

    Posted 05-22-2018 15:46

    Opportunity Zones are a reality now that all of the communities and eligible census tracts have been selected by individual state governors.  Regarding forming an investment vehicle and/or group to steer investments, the only Treasury guidance available thus far states that anyone can start an Opportunity Zone investment fund with no other requirement than the filing of the appropriate form with the IRS.  This was obviously a deliberate move on Treasury's part to keep the field wide open for investors to jump in and innovate insofar as partnering with state and local governments, CDCs, for-profit and non-profit developers, banks, et. al.  If anything, this "hands off" approach is encouraging an entrepreneurial spirit and a great deal of leeway in forming investment partnerships that make Opportunity Zones a nationally scalable incentive.  For example, there is no evidence as yet that deep pocket investors would be prohibited from forming a large national Opportunity Zone fund that could serve as a revolving loan fund of sorts which could funnel investment across state lines and into the selected communities.  In other words, return on investment and tax revenues from OZ investments could be funneled into a revolving loan fund separate and distinct from the Opportunity Zone National Fund (OZNF), which is merely providing the tax-deferred capital investment and start-up funding.  I'm just speculating, but I think tax-writers may look back and end up kicking themselves later on when they realize that limiting governors to just 25% of eligible census tracts may have been their biggest mistake.  As the saying goes, "go big or go home."



    Carl Wolf | Policy Analyst, GOVERNMENT RELATIONS
    P. 202.588.6254  


    The Watergate Office Building

    2600 Virginia Avenue NW  Suite 1100  Washington, DC 20037



  • 6.  RE: Opportunity Zones in the New Tax Law

    Posted 01-17-2019 19:17
    Thank you Carl. What is the designation of that form that needs to be filed? All IRS forms have a number. Maybe I can find out more information at too.

    Paul Stewart
    Underground Railroad History Project
    Albany NY

  • 7.  RE: Opportunity Zones in the New Tax Law

    Posted 01-18-2019 09:03
    FYI -- Forum hosted a webinar yesterday about Opportunity Zones. The recording should be available in a day or so--Opportunity Zones and the Preservation Community.

    Colleen Danz
    Forum Marketing Manager
    National Trust for Historic Preservation
    Washington DC