December 31, 2019 is the final date to receive the full tax benefit of Opportunity Zone investing…
December 31, 2019 is the final date to receive the full tax benefit of Opportunity Zone (“OZ”) investing. Nonetheless, the program continues to evolve.
Opportunity Zone IMPACT Act
Senator Tim Scott (R-SC) recently introduced the Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones (IMPACT) Act. The bill seeks to reinstate and enhance the reporting requirements surrounding OZ investments.
As described by Sen. Scott, the IMPACT Act:
Codifies requirements for Qualified Opportunity Funds to report the following information regarding the Qualified Opportunity Fund: (i) value of total assets held; (ii) location and value of OZ properties held; (iii) whether such properties are owned or leased; (iv) information surrounding disposed investments during the tax year; and (v) details regarding the location and industry classification codes of businesses receiving equity investments as well as the value of those investments. The IMPACT Act further requires reporting on number of persons employed through OZ investments, thereby providing data on job creation and firm growth without burdening small businesses and funds alike.
Codifies requirements for investors to report critical information on OZ investments including funds receiving investments, relevant dates on which investments and dispositions are made, descriptions of OZ investments, and measures that will continue to allow the IRS to track both the deferral and recognition of gains, the trajectory of OZ investments over time, and compliance more broadly.
Adds penalties for both individuals and funds that fail to accurately and appropriately file the required returns or statements and also significantly enhances penalties for any individual who attempts to take advantage of the OZ incentive for fraudulent purposes.
Requires that the Treasury make public as soon as practicable and annually thereafter timely, comprehensive information tracking Qualified Opportunity Funds and their corresponding investments into QOZs. Specifically, the Treasury shall make public in the aggregate the total number of funds, the total assets of all funds, the distribution of OZ investments across different industry classification codes, the percentage of all OZs that have received investment through the incentive, the total amount of Opportunity Fund investments made in each census tract, the distribution of investments in real property and active businesses, data deciphering the sizes of businesses receiving OZ investment, and numbers of jobs created or sustained by those businesses in light of OZ investments.
The full bill text of the IMPACT Act can be found here.
Given the continually evolving regulatory landscape, participation in the OZ Program takes an experienced legal and accounting team who is up to date on the growing field of regulations and can help you navigate them successfully.
With a multi-disciplinary team of affordable housing, real estate, tax and corporate attorneys, Scarinci Hollenbeck is uniquely qualified to help New Jersey investors navigate the new program and realize its benefits. To discuss potential opportunities for your business, we encourage you to contact us today.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact Stephanie Edelstein, Jeffrey Cassin, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
