Spencer Fane Tax Credit Finance attorneys work with real estate developers, lenders, syndication clients, and investors to capitalize on tax advantages associated with Opportunity Zone (OZ) investments, helping structure funds and close transactions that involve the use of OZ equity with the goal of maximizing benefits for stakeholders and the community.
The Tax Cuts and Jobs Act enacted in December 2017 allows private investors to achieve a tax deferral and reduction of capital gains from the sale of property when those capital gains are invested in property in a Qualified Opportunity Zone (QOZ). The goal of the Act is to draw long-term investments to low-income census tracts located across the nation. QOZs have been designated in each state, and generally, are located in areas where median household income is less than 80 percent of the state’s average. [View an interactive map of those census tracts here.]
Spencer Fane attorneys are well-versed in all aspects of OZ financing and guide clients through the development of a property in a QOZ, investment in a Qualified Opportunity Fund (QOF), and all the complexities necessary to maximize tax benefits. We function as a resource for developers interested in OZs, connecting them with investors and other parties that may be involved in a deal or helping to identify other funding sources. Because our attorneys are intimately familiar with these complicated and technical transactions, we work efficiently, which helps to keep costs down and increase return on the client’s investment.
Our team is experienced in real estate investment as well as tax credit matters, and we draw from that knowledge to collect and structure funds in an appropriate manner for investors. A number of deals that involve OZs also include the use of other tax credits familiar to attorneys due to their broad tax credit legal work. Our team continues to stay abreast of federal guidance in the use of OZs, allowing us to provide up-to-date counsel to clients throughout the process.