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

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.

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