Opportunity Zones

Opportunity zones have the potential to transform low-income communities, real estate investment and business formation across the country. No one understands this powerful new tool better than us.

Our Approach

Created by Congress’s recent tax reform bill, opportunity zones are designated low-income areas where investors can realize attractive tax advantages. Using a Qualified Opportunity Fund (O-Fund), investors can acquire a stake in new or existing buildings, property and businesses within these zones.

The O-Zone incentive allows investors to defer payment of capital gains tax on a currently held asset, which needn’t be real estate, earn additional tax forgiveness during the term of the opportunity zone investment, and potentially eliminate tax on disposition, which may include the value created above the initial investment. Projects financed by O-Funds are also eligible for various types of tax-credit financing.

Nixon Peabody has a dynamic, cross-practice opportunity zone working group with more than 40 attorneys. We anticipate opportunity zones opening the door for high-impact investment in a variety of sectors. Our attorneys are coveted writers and speakers as investors look for insights on the future of this new tool.

We can help with

  • Creating both closely held and publicly offered O-Funds
  • Reviewing O-Fund proposals and investment opportunities
  • Assuring compliance with timing and eligible project rules
  • Identifying and working with other tax incentives, like tax credits and tax-exempt finance
  • Starting and growing opportunity zone businesses
  • Securities law and marketing compliance

Who we work with

  • Family offices and individual investors
  • Project developers and sponsors
  • Government entities
  • Exempt organizations
  • Institutional lenders
  • Brokers and syndicators

Ten things to know about opportunity zones and renewable energy investment tax credits

Journal of Tax Credits | April 07, 2022

Boston Community Development Finance partner Forrest Milder contributed this article examining what investors should know about pairing the opportunity zone incentive with the renewable energy investment tax credit.

Treasury Offers Broad Opportunity Zone Investor Relief

Bloomberg Tax | June 05, 2020

This article quotes Boston Community Development Finance partner Forrest Milder on new Treasury guidance related to opportunity zone investors, noting what he’s been seeing in the space as well as issues that remain unaddressed.

4 Consideration for Investing in Opportunity Zones

Law360 | February 19, 2020

New York City Corporate partner Rick Cox provides commentary in this article about how managers of qualified opportunity funds can minimize conflicts of interest through organizational documents.

INSIGHT: Highlights of the final Opportunity Zone regulations

Bloomberg Tax | January 06, 2020

Boston Community Development Finance partner Forrest Milder wrote this contributed article analyzing the recently finalized IRS regulations governing opportunity zones.

First take on final OZ regulations

Affordable Housing Finance | December 26, 2019

Boston Community Development Finance partner Forrest Milder wrote this contributed article analyzing the final IRS regulations governing opportunity zones, the tax-advantaged investment opportunity created by Congress in 2017.

Investors urged to look at multiple benefits of opportunity zones

Rochester Business Journal and The Daily Record | October 11, 2019

This story quotes Rochester Affordable Housing and Real Estate partner Bruce Baker on the variety of different ways for investors to take advantage of opportunity zones, in Rochester and across the country.

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