Alabama Governor Signs State Incentive for OZ Investments
Alabama Gov. Kay Ivey signed a bill Thursday giving state taxpayers a capital gains tax reduction for opportunity zones (OZ) investments, conforming the Alabama tax code to the Internal Revenue Code on OZs. H.B. 540 also allows the state’s Department of Economic and Community Affairs to reach agreements with qualified opportunity funds (QOFs) to offer impact investment tax credits to investors in case the projects undertaken by the QOF don’t produce expected returns by the fifth year, with the provision that “extraordinary returns” are allocated back to the state. There is a $50 million annual cap on the credits.