White House Report: Qualified Opportunity Funds Raised Estimated $75 Billion for Opportunity Zones, Could Decrease Poverty in OZs by 11 Percent
The White House Council of Economic Advisers (CEA) today released a report on the economic impact of the opportunity zones (OZ) incentive. The Impact of Opportunity Zones: An Initial Assessment estimates that qualified opportunity funds (QOFs) raised $75 billion in private capital by the end of 2019, most of which may not have occurred in OZs without the incentive. This private capital from QOFs represents 21 percent of total annual investment in OZs. The CEA also finds that private equity investment in OZ businesses grew 29 percent compared to businesses in eligible communities not designated as OZs. The report finds that every $1 raised by qualified opportunity funds under the OZ incentive had a direct forgone federal revenue effect of 15 cents and projects that the capital already raised by QOFs could decrease poverty in OZs by 11 percent, lifting 1 million people out of poverty. The Trump campaign announced that it would expand OZs under a second Trump term.
The CEA report and more updates about the OZ incentive will be discussed at the Novogradac 2020 Opportunity Zones Fall Virtual Conference, Oct. 22-23.