A Significant Opportunity Zone Deadline Is Quickly Approaching

As has been the case over the last couple of years, opportunity zone ("OZ") investments have been the subject much interest from taxpayers and investors during 2021. This interest has led to the investment of significant amounts of capital into OZ projects throughout the country. Interest in the OZ program has been driven in large part by three potential tax federal tax benefits available to OZ investors, including:

1. Deferral of tax on the capital gain income invested into a qualifying opportunity fund ("QOF") until December 31, 2026;
2. Permanent exemption from tax on 15% of capital gain income invested into a QOF and held for at least 7 years by (or permanent exemption from tax on 10% of capital gain income invested into a QOF and held for at least 5 years) by December 31, 2026; and