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