The Opportunity Zone Program Presents Opportunity For Renewable Energy Development

The federal Tax Cuts and Jobs Act of 2017 created a tax incentive program (the "Opportunity Zone Program") that has the potential to provide a significant amount of funding for the development of renewable energy projects. The program incentivizes investors to pour money into 8,700 census tracts, known as Opportunity Zones, by offering significant tax benefits with respect to current and future capital gains. Investors can defer (and potentially exclude a portion of) capital gains from the sale of any assets by investing amounts equal to such capital gains into Qualified Opportunity Funds (QOFs) within 180 days from such sale. By investing in QOFs, investors can defer taxes on their current capital gains until the earlier of December 31, 2026 or the disposition of the QOF investment. If the QOF investment is held for five years, 10 percent of the deferred capital gain is permanently excluded, and if such investment is held for seven years, 15 percent of such deferred