Opportunity Zones: Next Steps
- Encourage the Treasury Department and IRS to move quickly to issue guidance and regulations which provide investors and Opportunity Funds with clarity and certainty, and also help ensure that the legislative intent of O-Zones is being met.
- Engage with community stakeholders (such as mayors, county executives and other local leaders) to determine how Opportunity Zone designations line up with current local community development goals and begin identifying projects that would benefit from additional equity capital through Opportunity Fund investments.
- Advocate for states and municipalities to create new programs or utilize existing incentive programs to pair with Opportunity Fund investments in order to:
- Ensure equitable and inclusive economic development by expanding access to opportunities for low-income residents and existing local businesses while protecting them from displacement.
- Enhance the investor benefits of this economic development initiative by incentivizing investments with high social benefits and driving investment opportunity where capital might not otherwise flow. For example:
- Further incentivize investments in Opportunity Funds and keep dollars locally invested by providing preferential tax treatment at the state level.
Steps Toward Implementation
- All Opportunity Zones approved by treasury (10 year designation)
- Implementation of law – Treasury Department rulemaking to be issued
- Investment activity expected to begin in Q4 2018 or Q1 2019
Opportunity Zones Updates