Opportunity Zones: Think Beyond Big Buildings; Build Neighborhoods
Wednesday, November 20, 2019
The speculation race is on for the opportunity zone market.
In 2017, a tax-incentivized investment program was launched to create tax benefits for investors who invest in one or more of the 8,764 distressed neighborhoods. The program was created to offset unequal growth in the United States and to revitalize neighborhoods with anemic growth. k
According to Forbes, what started as a federal program has now become a market.
That is exactly what is happening. Once the 8,764 Opportunity Zones were designated and the Treasury Department began issuing regulatory guidance, the market sprang to life. There has been a race to stake a claim in this new market, with the launch of at least 264 funds, targeting more than $63 billion dollars, in less than two years. - Opportunity Zones Aren't a Program -- They're a Market
While many in the press have found faults in the program and accused the Federal Government of creating a boon for the wealthy, the investment exists and investors are rolling capital gains into funds to defer taxes.
Opportunity zones exist and they exist to help distressed neighborhoods. There will be some questionable investments and in years to come Congress will examine the program. However, there will also be families who are positively impacted. This is a long-term social investment.
Category: Economic Development News, Opportunity Zones