If you are interested in Opportunity Zones, I recommend following the Economic Innovation Group, a bipartisan public policy organization with the mission to advance solutions that empower entrepreneurs and investors to forge a more dynamic economy throughout America. Their April 2015 paper, Unlocking Private Capital to Facilitate Economic Growth in Distressed Areas was a catalyst for and provided a framework for the Investing in Opportunity Act.
The paper proposed “a structure analogous to that of a venture capital firm or mutual fund company, but specialized in development investments in businesses in predetermined locales. These specialized investment vehicles, which could raise capital from a mix of individual and institutional investors, would operate in targeted locales, and special tax provisions that are established for them would apply so long as the investments stayed within qualified geographic areas. One key advantage is that they are structured so as to allow partners to pool their resources and invest in numerous projects at any given time in a highly nimble fashion.”
“These specialized investment vehicles, which could raise capital from a mix of individual and institutional investors, would operate in targeted locales, and special tax provisions that are established for them would apply so long as the investments stayed within qualified geographic areas.”
While many models are developing across the country as investors and communities work to put the Opportunity Zone program into practice, it is clear that the number that the institutional-type Opportunity Fund investors, like the one suggested in the article, are raising significant amounts of money seeking investment opportunities in designated opportunity zones.
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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