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“Qualified Opportunity Zones and Proposed Legislative Changes” in Business Facilities

October 1, 2022

Katherine Noll's article on “Qualified Opportunity Zones and Proposed Legislative Changes”

Business Facilities

In an article published in Business Facilities on September 13, 2022, San Antonio-based Shareholder Katherine Noll discusses five potential impacts of the Opportunity Zones (OZ) Improvement, Transparency and Extension Act that was proposed in April of 2022. Noll examines investors’ continued interest in taking advantage of the tax benefits afforded by investments in Qualified Opportunity Zone Funds.

“As alluded to by the title of the Act, among other things this bipartisan Act would improve the policy behind the existing opportunity zone statutes by allowing for fund-of-fund structures, increasing reporting requirements, extending the deferral period by two years (from 2026 to 2028), and modifying certain census tracts designated as Qualified Opportunity Zones,” Noll explains.

Noll discusses how the Act will achieve certain policy objectives while expanding the ability for Opportunity Zone Investment in several positive ways at the cost of increase reporting and information disclosure.

“This is not the first time there have been legislative proposals to enhance reporting, and, accordingly, investors looking to utilize the tax incentives through OZ Investment should be aware of the likelihood they will be subject to increased reporting and stricter scrutiny than the current requirements,” says Noll. “Although improving policy concerns, such as increased reporting will likely lessen the appetite for some tax-motivated investors taking aggressive tax positions within OZ Investment structures.” 

To read the full article, please visit Business Facilities here.