Article by Christopher Steele and Jasmin Severino Hernandez on “Opportunity Zones in 2021 and Beyond"
In an article published in Tax Notes State and Tax Notes Federal on April 26, 2021, Chamberlain Atlanta-based Shareholder Christopher Steele and Associate Jasmin Severino Hernandez discuss how the Opportunity Zone program may change with the Biden administration.
“Opportunity Zones are economically distressed communities defined by individual census tracts that state governors nominate and that are certified by the secretary of the Treasury,” explain Steele and Severino Hernandez. “Investors may invest in financing projects and development in exchange for tax benefits related to capital gains.”
Steele and Severino Hernandez further explain the background on the opportunity zone program and how it could boom in 2021. “While studies have shown mixed results regarding the purpose of Opportunity Zones, 2021 brings hope that they could become a focus for those looking to benefit from reinvestment of capital gains because of potential qualified Opportunity Zone and tax code changes under President Biden,” said Steele and Severino Hernandez.
In the aftermath of the pandemic, Steele and Severino Hernandez share that while Opportunity Zones had a slow start last year, they may pick up the pace in 2021 as an excellent investment opportunity. The program itself may face changes but the zones continue to provide tax benefits for investors and much-needed economic growth for underserved communities.