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Budget legislation signed by Ohio Gov. Mike DeWine includes a provision increasing the state opportunity zones (OZ) tax credit taxpayer cap per fiscal biennium to $2 million. The budget legislation retained the statewide cap of $50 million per fiscal biennium, but doubled the amount a single taxpayer can claim. The 10% credit is for investments in qualified opportunity funds that hold 100% of their invested assets in Ohio.
Rep. Jim Hagedorn, R-Minnesota, introduced legislation to increase the number of opportunity zones (OZs) and extend the OZ tax deferral date by three years. The Expanding Opportunity Zones Act of 2021 (H.R. 4177) would boost the percentage of low-income communities that each state that can designate as OZs from 25% to 30%, which would create an estimated 950 additional OZs across the nation.
The board of governors of the Federal Reserve System (Fed) and Federal Deposit Insurance Corporation (FDIC) released the list of distressed or underserved nonmetropolitan middle-income geographies for 2021, which makes revitalization or stabilization activities in those areas eligible for Community Reinvestment Act (CRA) consideration. The designations reflect local economic conditions, including unemployment, poverty and population changes. The Fed and FDIC continue to apply a one-year lag period for areas listed in 2020 that are no longer designated as distressed or underserved, making revitalization or stabilization activities in those geographies eligible for CRA condensation for 12 months after the publication of the current list.
https://www.novoco.com/resource-centers/opportunity-zone-resource-center/guidance/novogradac-opportunity-zones-mapping-toolThe Internal Revenue Service (IRS) today issued Announcement 2021-10, confirming that the boundaries of designated qualified opportunity zones (OZs) were established at the time they were designated, are unaffected by 2020 decennial census changes and are not subject to change.
Qualified opportunity funds (QOFs) tracked by Novogradac reported an increase of more than $1 billion in investment since the end of 2020. QOFs tracked by Novogradac reported an equity raise of $16.34 billion for investment in opportunity zones (OZs) as of April 12, up from $15.16 billion reported at the end of 2020. Novogradac is now tracking 1,002 QOFs, of which 708 reported a dollar amount of equity raised. A blogpost by Michael Novogradac looks deeper at the most recent data, including the average equity raise and the types of investment that are most common.
Legislation introduced in the South Carolina General Assembly would create a tax credit for investment in new projects in opportunity zones (OZs), as well as other OZ investments. H.B. 3131 would create a 25% credit for the first $50,000 of OZ investment costs for taxpayers and would make recipients of federal low-income housing tax credits (LIHTCs) to automatically receive state LIHTC equal to the federal credit if their development is in an OZ. The legislation also includes a credit for each job created, with the amount varying depending on the economic status of the county; and a tax rebate for grocery stores in food deserts.
New York Gov. Andrew Cuomo today signed budget legislation that includes a provision to take the state out of conformity with the Internal Revenue Code concerning the opportunity zones (OZ) incentive. The provision was included in a series of bills to make up the state’s budget for 2021-2022 fiscal year. For taxable years beginning Jan. 1, 2021, the OZ gain excludable from federal taxes is not excludable in New York state taxes.
The Internal Revenue Service (IRS) will publish in Wednesday’s Federal Register a notice of proposed rulemaking for the opportunity zones (OZ) incentive that provides flexibility in the 24-month extension of the working capital safe harbor in the case of federally declared disaster areas. The proposed rule would allow qualified OZ businesses to revise or replace the original written designation and written plan and remain eligible for the safe harbor, provided that the remaining working capital assets are expended within the original 31-month period, increased by the 24 additional months provided.
The Novogradac Opportunity Zones Mapping Tool has been updated to indicate whether there are boundary changes to qualified OZ census tracts (QOZs) due to the 2020 Census, a change that will necessitate IRS guidance, since eligibility for the OZ incentive is based on 2010 census tract boundaries.
The federal opportunity zones (OZ) incentive would be extended until the end of 2028 under legislation introduced in the House of Representatives. The Opportunity Zones Extension Act of 2021 would allow taxpayers to defer taxes on capital gains invested in qualified opportunity funds (QOFs) through 2028, two years later than currently allowed.
Equity raised by qualified opportunity funds (QOFs) tracked by Novogradac surpassed $15 billion at the end of 2020, according to Novogradac Opportunity Zones Investment Report: Data Through Dec. 31, 2020, released today. Novogradac is tracking 927 QOFs, 659 of which reported a specific amount of equity raised for investment in opportunity zones (OZs). The $15.16 billion in equity reported is $3.11 billion more than the figure at the end of August 2020.
A private letter ruling (PLR) by the Internal Revenue Service allowed a taxpayer to become a qualified opportunity fund (QOF) despite missing a registration deadline due to its tax advisor failing to attach IRS Form 8996 to the taxpayer’s return. Upon discovery of the oversight, the taxpayer directed the tax advisor to promptly submit a request for relief.
Certain Louisiana Angel Investor Tax Credit investments made in opportunity zones (OZs) are eligible for an enhanced tax credit of 35%, effective today. Louisiana S. 24 made the change to the Angel Investor Tax Credit program, providing the enhanced credit for investments made in businesses in OZs that are certified as Louisiana Entrepreneurial Businesses.
The Internal Revenue Service (IRS) today issued a notice providing relief to qualified opportunity funds (QOFs) and their investors due to the COVID-19 pandemic, extending opportunity zones (OZ) relief provided by an earlier notice. Notice 2021-10 provides relief for the 180-day investment requirement, the 30-month substantial improvement period, 90% investment standard for QOFs, working capital safe harbor for OZ businesses and 12-month reinvestment period for QOFs.
The Internal Revenue Service (IRS) today announced that it is sending letters to inform taxpayers that they may need to take additional actions related to qualified opportunity funds (QOFs). The IRS said that taxpayers who attached a Form 8996 to a tax return or indicated that they did so may receive a letter that indicates that if they intend to self-certify as a QOF, they may need to take additional action.
The Wisconsin Department of Revenue informed taxpayers that Form WQOF must be filed with the department by Wisconsin-centered qualified opportunity funds (QOFs) and each investor must receive a copy of the form by Jan. 31 of the year following the close of the fund’s taxable year. Wisconsin A.B.
The Office of the Comptroller of the Currency (OCC) today published a notice of proposed rulemaking requesting comment on its approach to determine Community Reinvestment Act (CRA) measurement thresholds.
President-elect Joe Biden today formally nominated Janet Yellen to be his Secretary of the Treasury. Yellen, the chairwoman of the Federal Reserve from 2014-2018, would be the 78th Treasury Secretary and first woman to hold the position if confirmed by the U.S. Senate.
A report by the U.S. Government Accountability Office (GAO) says there is need for more oversight of opportunity zones (OZs) and makes two specific recommendations for Congress.
Demonstrating that the COVID-19 pandemic has disproportionately harmed low-income communities–particularly children–a new report from the Economic Innovation Group (EIG) explains how the opportunity zones (OZ) incentive can be used to build a supportive ecosystem for children and families in OZs.
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