Recent News

Qualified opportunity funds (QOFs) tracked by Novogradac reported a cumulative $37.62 billion in equity raised from the inception of the opportunity zones (OZ) incentive through Dec. 31, 2023. There was $3.53 billion in equity reported raised in 2023 by 1,461 QOFs tracked by Novogradac that reported a specific equity amount. Residential development continues to be the leading area of investment, with commercial development second.

The Internal Revenue Service (IRS) recently updated its frequently asked questions document related to refund claims for the employee retention tax credit (ERC) to outline procedures for employers to withdraw suspect claims. The ERC was enacted in response to the COVID-19 pandemic as relief for employers in the form of refunds of employer payroll taxes for up to $26,000 per eligible employee. Qualification is complex: At a high level, employers may be eligible to claim the credit if they suffered a significant decline in gross receipts in 2020 or during the first three quarters of 2021 as measured against quarters in 2019, or if they sustained a full or partial suspension of operations due to a government-issued order aimed at mitigating the spread of COVID-19. The IRS says it believes that many employers filed claims without fully vetting their eligibility, potentially based on faulty advice from advisors who might have been compensated on a commission basis.

The Federal Reserve, Office of Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) today released their final rule concerning Community Reinvestment Act (CRA) regulations. The Federal Reserve also released a fact sheet, overview of key objectives and a Board memo on the final rule. The final rule gives equal weight to retail activities and community development (CD) activities, a change from a 60-40 split in the proposed rule and one that affordable housing and community development stakeholders sought. The rule includes four tests: retail lending, retail services and products, CD financing and CD services. The regulations also give added weight for large banks that invest in low-income housing tax credit (LIHTC) and new markets tax credit (NMTC) equity. More than 75% of annual LIHTC equity investment and virtually all annual NMTC equity investments are from CRA-motivated financial institutions. The final rule will be effective April 1, 2024, except for certain amendments, which are delayed indefinitely. A later announcement will be made for their implementation.

Rep. Mike Kelly, R-Pennsylvania, and a bipartisan group of three co-sponsors Wednesday introduced the Opportunity Zones Transparency, Extension and Improvement Act (H. 5761). Text for the bill was not immediately available, but it’s expected to be similar to legislation introduced last year in the House and Senate–extending the deferral date for opportunity zones (OZ) investment from the end of 2026 to the end of 2028, expanding reporting requirements, allowing “funds of funds” to invest in other qualified opportunity funds (QOFs) and more.

Rep. Jason Smith, R-Missouri, on Friday introduced the Small Business Jobs Act, which would introduce reporting requirements for qualified opportunity funds (QOFs) and create qualified rural opportunity zones.

Novogradac Opportunity Zones Mapping Tool
icon map

Find opportunity zones by zip code, census tract, and more.

Learn more >>
Opportunity Zones Working Group
icon oz working group

The Opportunity Zones Working Group suggests consensus solutions to technical Opportunity Zones incentive issues.

Learn more >>
Opportunity Funds Listing
icon oz funds list

A listing of funds formed to invest in opportunity zones.

Learn more >>
Learn more about Novogradac's expertise and many services