December 31, 2019 is the final date to receive the full tax benefit of Opportunity Zone investing…
December 31, 2019 is the final date to receive the full tax benefit of Opportunity Zone (“OZ”) investing. Nonetheless, the program continues to evolve.
Opportunity Zone IMPACT Act
Senator Tim Scott (R-SC) recently introduced the Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones (IMPACT) Act. The bill seeks to reinstate and enhance the reporting requirements surrounding OZ investments.
As described by Sen. Scott, the IMPACT Act:
Codifies requirements for Qualified Opportunity Funds to report the following information regarding the Qualified Opportunity Fund: (i) value of total assets held; (ii) location and value of OZ properties held; (iii) whether such properties are owned or leased; (iv) information surrounding disposed investments during the tax year; and (v) details regarding the location and industry classification codes of businesses receiving equity investments as well as the value of those investments. The IMPACT Act further requires reporting on number of persons employed through OZ investments, thereby providing data on job creation and firm growth without burdening small businesses and funds alike.
Codifies requirements for investors to report critical information on OZ investments including funds receiving investments, relevant dates on which investments and dispositions are made, descriptions of OZ investments, and measures that will continue to allow the IRS to track both the deferral and recognition of gains, the trajectory of OZ investments over time, and compliance more broadly.
Adds penalties for both individuals and funds that fail to accurately and appropriately file the required returns or statements and also significantly enhances penalties for any individual who attempts to take advantage of the OZ incentive for fraudulent purposes.
Requires that the Treasury make public as soon as practicable and annually thereafter timely, comprehensive information tracking Qualified Opportunity Funds and their corresponding investments into QOZs. Specifically, the Treasury shall make public in the aggregate the total number of funds, the total assets of all funds, the distribution of OZ investments across different industry classification codes, the percentage of all OZs that have received investment through the incentive, the total amount of Opportunity Fund investments made in each census tract, the distribution of investments in real property and active businesses, data deciphering the sizes of businesses receiving OZ investment, and numbers of jobs created or sustained by those businesses in light of OZ investments.
The full bill text of the IMPACT Act can be found here.
Given the continually evolving regulatory landscape, participation in the OZ Program takes an experienced legal and accounting team who is up to date on the growing field of regulations and can help you navigate them successfully.
With a multi-disciplinary team of affordable housing, real estate, tax and corporate attorneys, Scarinci Hollenbeck is uniquely qualified to help New Jersey investors navigate the new program and realize its benefits. To discuss potential opportunities for your business, we encourage you to contact us today.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact Stephanie Edelstein, Jeffrey Cassin, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
