Posts

Showing posts with the label IRS

New Opportunity Zone Guidance

Image
April 17th saw the release of a second set of guidance for the “Opportunity Zone” (OZ) program. As we noted in testimony to the IRS on February 14th, we remain concerned that the OZ program diverts needed tax revenue from public purposes and places this revenue in the hands of a mainly wealthy and white demographic unrepresentative of the US population as a whole. As the Hill Newspaper noted, the program has "drawn criticism from those who argue it will primarily benefit wealthy investors rather than residents of low-income neighborhoods." Today's regs do nothing to change this concern.

The regs released today benefit Opportunity Zone Funds (as opposed to residents). These funds are the financial vehicle used to make investments in Opportunity Zone areas. Today's regs are "designed to make it easier for funds to ensure that they are complying with a requirement that they have 90 percent of their assets invested in opportunity zones." In other words, the foc…

Impact Investing