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Friday, January 11, 2019

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.

Monday, January 7, 2019

The Internal Revenue Service (IRS) today announced the cancellation due to the ongoing government shutdown of a public hearing on proposed regulations for opportunity zones. The public hearing was originally scheduled for Thursday, but will be rescheduled for at least two weeks after appropriations for the Department of the Treasury are restored. The IRS notice will be published in the Federal Register.

Friday, January 4, 2019

Maryland Gov. Larry Hogan announced a series of initiatives this week to expand the opportunity zones (OZ) incentive in his state. Maryland will make $20 million available for building or renovating affordable housing, $8 million for small business lending and $3.5 million for site acquisition and demolition of derelict buildings and redevelopment in OZs. The state’s EARN workforce development grant program will invest $3 million in a job training program for businesses in the state’s 139 OZs and the state will issue other grants for businesses to provide workforce training programs.

Friday, January 4, 2019

The Novogradac Opportunity Zones (OZ) Working Group sent a letter to the Department of Treasury and the Internal Revenue Service (IRS), commenting on issues raised by Treasury regulations for OZs, providing recommended solutions and responding to specific requests by the agencies. Treasury issued its initial tranche of proposed Treasury regulations in October 2018 and further guidance is expected soon.

Wednesday, December 19, 2018

Legislation introduced in South Carolina this week would create a 25 percent tax credit for companies that investment in opportunity zones. H. 3186, sponsored by Rep. Marvin Pendarvis, includes a cap of $50,000 per taxpayer, would allow the credit to be carried over for up to five years and would begin in 2019. The legislation was assigned to the state Ways and Means Committee.

Wednesday, December 12, 2018

President Donald Trump today signed an executive order establishing the White House Opportunity and Revitalization Council, which will be led by U.S. Department of Housing and Urban Development Secretary Ben Carson and will include representatives from 13 federal agencies. The council will work across agencies to prioritize or focus federal investments and programs on urban and economically distressed communities, including opportunity zones (OZs).

Wednesday, December 12, 2018

President Donald Trump is expected today to sign an executive order that will create a White House council tasked with coordinating and streamlining federal efforts to boost opportunity zones investments. Reports indicate the White House Opportunity and Revitalization Council will be led by U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson and will have representatives from 13 federal agencies.  

Novogradac will send another email alert when the text of the executive order, and any other additional information, becomes available.

Tuesday, December 11, 2018

Rep. Mark Meadows, R-N.C., introduced the Disaster Recovery and Opportunity Act of 2018 this week, which would allow parts of federally declared disaster areas to be designated as opportunity zones (OZs). H.R. 7242 would allow governors to declare up to 5 percent of applicable disaster tracts as OZs. The legislation was referred to the House Ways and Means Committee.

Friday, November 30, 2018

The Novogradac Opportunity Zones Working Group this week submitted to the Internal Revenue Service (IRS) a priority request for further opportunity zones (OZ) guidance. The letter said that taxpayer uncertainty around issues unaddressed by proposed guidance released Oct. 19 hinders investment in OZs.

Friday, November 16, 2018

A group of seven U.S. senators introduced a bill Thursday to provide tax relief for victims of Hurricane Florence, Hurricane Michael and certain California wildfires.  Hurricanes Florence and Michael and California Wildfire Tax Relief Act (S. 3648) would amend the tax code to treat any applicable disaster zone as an opportunity zone. Bill sponsors include Sens.

Wednesday, November 7, 2018

Results from Tuesday’s elections–with Democrats taking control of the House of Representatives and Republicans maintaining control of the Senate–and their effect on the affordable housing, community development and renewable energy communities are the subject of a Notes from Novogradac blog post and a

Friday, October 26, 2018

The National Council of State Housing Agencies (NCSHA) submitted a letter to the Internal Revenue Service asking for guidance clarifying that residential real estate property qualifies as opportunity zones (OZs) property and addressing five other OZ issues.

Friday, October 19, 2018

In a Notes from Novogradac blog post, Michael J. Novogradac, discusses how the opportunity zones guidance issued today by Treasury provides answers to many questions and includes information that will help guide investors, fund managers and others.

Friday, October 19, 2018

The Treasury Department today released the first tranche of proposed guidance for the opportunity zones (OZ) incentive, addressing gains invested in qualified opportunity funds. Treasury also released a related revenue ruling. Treasury will accept comments for 60 days.

Monday, October 15, 2018

Two organizations submitted letters concerning the Treasury Department’s ongoing review of proposed guidance for opportunity zones (OZs). Commerce officials from 12 states made a series of recommendations for OZ guidance, including a grace period for opportunity funds before being subjected to the 90 percent qualified property allocation test and the definition of “substantial improvement” of qualified OZ business property.

Thursday, September 27, 2018

Rep. Mark Meadows, R-N.C., introduced legislation today to allow for the designation of opportunity zones (OZs) every 10 years, effectively perpetually renewing the OZ incentive that was part of tax reform legislation. H.R. 6890, the Creating Advancement and Personal Improvement in Targeted American Localities (CAPITAL) Act of 2018 was assigned to the House Ways and Means Committee.

Friday, September 21, 2018

Rep. Jenniffer Gonzalez-Colon, R, Puerto Rico, introduced legislation to provide a federal tax credit for certain business expenses in census tracts that meet one of three definitions for an economically distressed zone and are designated as such by local or state government. H.R.

Thursday, September 13, 2018

The Office of Information and Regulatory Affairs (OIRA), a division of the White House Office Management of the Budget (OMB), on Wednesday received regulatory guidance for review from the Internal Revenue Service (IRS) concerning the opportunity zones incentive. A proposed rule from the IRS is expected to clarify several issues for investors in the new incentive.

Tuesday, September 11, 2018

The National Association of Home Builders and eight other national organizations on Monday asked acting Internal Revenue Service Commissioner David Kautter to issue guidance on issues facing potential investors in the federal opportunity zones initiative. Their letter specifically seeks a definition of qualified investments, a clarification of the oversight process for investment funds and clarification of several teams in the statute.

Tuesday, September 11, 2018

Legislation was introduced to create a 10 percent state tax credit in Ohio for taxpayers who invest in an Ohio-based opportunity fund that participates in the federal opportunity zones (OZ) incentive. H.B. 727 would provide the state tax credit to taxpayers who invest at least $250,000 in an opportunity fund that holds 100 percent of its assets in a qualified OZ business or qualified OZ property in a designated Ohio qualified OZ.