California Governor’s Proposed Budget Calls for OZ Conformity
California Gov. Gavin Newsom today published his 2019-2020 proposed budget summary, which would include conforming state law to federal law allowing for deferred and reduced taxes on capital gains in opportunity zones (OZs) for investments in green technology or in affordable housing, and for excluding gains on such investments in OZs held for 10 or more years. California state law currently does not conform to federal tax law regarding OZ investments. The budget also proposes pairing the state’s enhanced infrastructure financing districts with OZs and exploring ways to layer additional programs to increase the production of affordable housing.