NAHB has joined the Bipartisan Policy Center and eight other national organizations to ask Acting Commissioner of the Internal Revenue Service, David Kautter, to issue guidance on key issues facing investors interested in opportunity zones, established as part of the Tax Cuts and Jobs Act of 2017.
These issues include defining qualified investments, clarifying the oversight process for investment funds and clarifying and defining the vague terms included in the statute, such as the requirement that a target property be “significantly improved.”
Opportunity zones are designed to incentivize investment and economic development in under-served communities. Opportunity zones may offer developers a new source of financing and could prove to be a powerful economic tool if property administered.
Although further guidance from the IRS is surely forthcoming, investors of all sizes can immediately position themselves to qualify for substantial tax incentives by investing in Opportunity Zones.