Response from renewable developers has been slow to the Tax Cuts
and Job Act of 2017's Opportunity Zone program, with only 11
Qualified Opportunity Funds (QOFs) focused on renewable energy
since the program began. The program provides capital gains tax
benefits for renewable investments in up to 8,700 federally
designated areas. The program allows investors to defer taxes and
gains put into QOFs, the vehicles used to invest in the zones,
until December 2026. Investors who hold their investments for five
to seven years can increase their basis on the investment by 10 to
15 percent, cutting taxes by an equal amount. If they hold their
investments for at least a decade, any extra gain on the investment
is not subject to federal taxes. However, there are time limits for
investors to take advantage of the program. The 15% capital tax
deferral rate is only available up to the end of this year. After
that, it will drop to 10% until 2021. One reason for the sluggish
response
