Opportunity Zones

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

Media Clips

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.

Opportunity Zone investing—How is debt handled in determining the basis step-up after 10 years?

Bloomberg Tax | May 15, 2019

Boston Community Development Finance partner Forrest Milder wrote this contributed article explaining the math behind determining the fair market value of a qualified opportunity fund partnership interest after 10 years.

Experts delve into Opportunity Zones and housing

Affordable Housing Finance | April 21, 2019

Boston Community Development Finance partner Forrest Milder discusses opportunity zones and housing in this video from the AHF Live Forum.

Opportunity zone rules leave out data reporting, penalty details

Bloomberg Tax | April 21, 2019

Boston Community Development Finance partner Forrest Milder is quoted in this article, discussing possible confusion stemming from the murky definition of “independent contractor” in proposed IRS rules governing opportunity zones.

Securities law considerations for sponsors of qualified opportunity zone funds

Insights | March 25, 2019

New York City Corporate partner Dan McAvoy wrote this contributed article for Insights, Wolters Kluwer’s corporate and securities-focused monthly journal, exploring securities law issues related to the creation of opportunity funds.

Out of the comfort zone: Newbies take to opportunity zones

Commercial Observer | January 21, 2019

New York City Affordable Housing & Real Estate partner Aaron Yowell is quoted extensively in this story on how potential investors in opportunity zones are navigating this complex new development vehicle.

IRS provides guidance on opportunity zones

Affordable Housing Finance | October 23, 2018

Boston Community Development Finance partner Forrest Milder is quoted extensively in this article outlining the impact of new IRS guidelines governing the use of the Opportunity Zone program for affordable housing developers.

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Ideas