IRS Issues Additional Proposed Regulations On Qualified Opportunity Zones

On Dec. 22, 2017, the Qualified Opportunity Zone tax incentive program was signed into law as part of the Tax Cuts and Jobs Act of 2017. The goal of the Qualified Opportunity Zone program is to encourage investment in designated economically distressed communities throughout the U.S. (QOZs) through qualified opportunity funds (QOFs) by offering investors (i) the opportunity to defer the recognition of capital gains otherwise includible in their taxable income, (ii) the ability to exclude up to 15 percent of such capital gain if a QOF interest is held for seven or more years prior to Dec. 31, 2026, and (iii) the ability to completely exclude the appreciation on such QOF investment upon a sale of a QOF interest if held for at least 10 years. For a general overview of the Qualified Opportunity Zone program, please click here.