Construction Reporter
  • Home
  • Services
    • Planroom
    • Printing
    • Project Upload
    • Architects & Owners
    • General Contractors
    • Subcontractors
  • Free Trial
  • Become a Member
  • Magazine
  • News
  • Contact Us
  • About
    • About
    • FAQs
    • Privacy Policy

opportunity zone policies clarified by treasury department

1/2/2020

0 Comments

 
Picture
Final rules governing Opportunity Zone development and construction projects have now been released by the Department of the Treasury.

Those rules state that if a developer or investor purchased a structure for a reduced amount because it exists inside a defined Opportunity Zone, that doesn’t mean they have to spend all of the amount saved on renovating that structure.

According to Treasury Department officials, the new rule will make it substantially easier for developers to use the money saved from a reduced-price purchase for the purchase of another structure, also within an Opportunity Zone.

The new rules also state that even though capital gains by U.S. companies and individuals are eligible to be invested in an Opportunity Zone by, non-resident foreign companies and individuals can still make investments in those zones.

The updated Treasury Department rules, notes the Miami Herald, clarifies “what types of developments can receive investments from a fund, namely, new construction. Previously it was not clear if that category strictly applied.”

The Opportunity Zone program was incorporated into the Tax Cuts and Jobs Act of 2017 and has been designed to encourage investment in areas across the country that have been identified as low-income communities.

That investment is encouraged through a series of federal tax breaks for real estate investors and developers who invest in the defined zones.

That investment has particularly targeted existing older structures in need of renovation and upgrading.

There are currently 8,700 defined Opportunity Zones nationally.

According to a survey conducted by the accounting services firm Novogradac, Opportunity Zone investment currently stands at $4.5 billion, up from less than $3 billion in early 2019.

Of that amount, more than half of the investment has gone for mixed-use projects, while 36 percent has targeted residential development and construction, with a smaller 15 percent used for commercial projects.

By Garry Boulard

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Get stories like these right to your inbox.
    ​Sign up for our newsletter

    Subscribe

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All

AFFILIATES

Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
HOME
PLANS & PRICING
FREE TRIAL
MAGAZINE​
BECOME A MEMBER
PRINTING SERVICES
FAQS
CONTACT
​ABOUT

TIMELY, RELIABLE NEWS SINCE 1949 ​Construction Reporter
​
4901 Mcleod Rd NE STE 200A
Albuquerque NM 87109


​Phone: (505)-243-9793
Toll Free: (877)-292-5793
​Fax: (505)-242-4758

Copyright © 2022 Construction Reporter
User Agreement   Privacy Policy   Archive Policy
  • Home
  • Services
    • Planroom
    • Printing
    • Project Upload
    • Architects & Owners
    • General Contractors
    • Subcontractors
  • Free Trial
  • Become a Member
  • Magazine
  • News
  • Contact Us
  • About
    • About
    • FAQs
    • Privacy Policy