No Cap Limiting Tax Benefit in Opportunity Zones

Treppa says the program is broad-based as it is available to virtually any taxpayer with capital gains.

SAN FRANCISCO—Opportunity Zones, the economic development tool created to stimulate investment in low-income communities, is causing a stir in both start-up and development communities. This tool extends tax advantages to investors in qualified opportunity funds that primarily invest in projects or businesses located in Opportunity Zones.

Unlike other economic development programs, the incentive is not limited to real estate investments.  Rather, businesses that intend to deploy capital and operate in Opportunity Zones can benefit from this incentive, says Julie Treppa, tax partner in Farella Braun + Martel’s San Francisco office. As a result, the program has been attracting the attention of investors, developers and business owners, driving up pricing on real estate sales and lease rates within these communities.