Are you Opportunity Zone Ready?
By Alejandra Guzmán
Click aqui para español- > ¿Estás listo para las zonas de oportunidad?
There has been a lot of discussion lately about the recently released Opportunity Zone Federal Program, which was established by Congress in the Tax Cuts and Jobs Act of 2017. The program defines an opportunity zone as an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as opportunity zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.
The idea behind this is that opportunity zones will open up a pathway for private investors to put money into economically challenged communities, through a variety of tax benefits for the capital invested and gained, conditional on meeting certain requirements. The hope is that neighborhoods with a lack of investment will enjoy an influx of private capital, and investors will earn a nice return. This will be great for spurring investments and entrepreneurial activity.
Real estate development in particular is expected to benefit from this. Also, it can play an important role in creating resilient communities. When developing the right products through the right processes, communities can vastly improve. Opportunities such as job creation during construction and during the long-term operations of the development bring with them other neighborhood resources that didn’t exist before. In addition to that, development projects can positively affect the public realm by bringing vitality and safety to a neighborhood. When done right, real estate investment can reduce racial disparities, build a culture of health, and bring vibrancy to communities. Overall, this is a great opportunity to funnel investment to New Orleans by bringing additional capital for real estate development projects but also to support our local business owners and professional service providers to find opportunities.
To support the local community of investors, projects, and professional service providers, the New Orleans Business Alliance has created a series of comprehensive workshops focused on the Federal Opportunity Zone program. Attendees can expect to learn about fund creation, operation, and equitable development outcomes throughout Orleans Parishes’ designated opportunity zones, as well as receive the tools necessary to attract investment. Participants can benefit from networking with developers, entrepreneurs, banks and other institutions to find the best investment opportunities across New Orleans. They will also be able to meet industry experts and connect with tax and real estate professionals who specialize in preparing businesses for Opportunity Zone investment and fund formation.
The first workshop takes place on November 19, 2019, 8:00 a.m.–4:30 p.m. at the Jung Hotel.
Visit www.nolaba.org for more information.
Until next time!