Opportunity Zone Incentives to Taper in the New Year: Here’s Why They Should Be Extended
Investment in opportunity zones is just getting warmed up, but significant tax incentives end on December 31, 2019. The deadline puts excessive pressure on investors because the IRS didn’t issue full guidance on the program until well into 2019. The most creative and innovative projects take time to develop, and investors need time to find them. Extending the program another year would give investors the time they need to identify and evaluate potential deals and invest only in high-quality ones.
Although the opportunity zone program doesn’t end until 2026, the tax incentives begin to taper off at the end of 2019 and again in 2021. 2019’s close spells the end of a five-percent reduction on deferred capital gains invested in opportunity zone funds. Ending the five-percent incentive early means that investors will likely direct less capital toward the undeserved areas the program is designed to help.
Read more via this Forbes published article.