Joey Strength recently attended the Opportunity Zones Workshop at the Novogradac 2018 New Markets Spring Tax Credit Conference, which is believed to be the first continuing education program focused on Opportunity Zones created under the 2017 Tax Cuts and Jobs Act.
Five Key Takeaways:
Selected zones are home to more than 31 million people with an average poverty rate of nearly 31 percent.
The potential for economic benefit is promising with 75 percent of the zones selected being tracts located within zip codes that have experienced employment growth from 2001 to 2015.
Sixty-four percent of designated zones are in zip codes with an increased number of businesses established in that same period.
Competent tax and legal advice will be necessary to qualify projects. A number of important questions about implementation have yet to be resolved by the Internal Revenue Service and may not be resolved in a timely manner this year.
Many proponents believe the program will create a new industry focused on community-based investments as a new asset class.
Through his firm HunterMaclean, Strength is a member of the Novogradac Opportunity Zone Working Group. Members of the OZ Working Group work together to suggest consensus solutions to technical Opportunity Zones incentive issues and provide recommendations to make the Opportunity Zones incentive more efficient in delivering benefits to low-income communities.
Joey Strength is a partner at HunterMaclean, practicing primarily in real estate and development law, estates and trusts, and business transactions. He is a trusted advisor to his clients, ranging from individuals to publicly traded companies, and provides them with quality legal representation and advice across various areas. Joey strives to understand his clients’ personal and business needs to find creative solutions to their legal problems.
Joey is a proponent of the Opportunity Zone legislation that was included in the 2017 Tax Cut and Jobs Act and has represented HunterMaclean in a national working group of attorneys, accountants, developers, and others who have collaborated to provide input in the regulatory process. He is currently working with a number of clients who are considering how they might benefit from the program and enjoys sharing about the program with others.
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