Enhancing Returns From Opportunity Zone Projects By Combining Federal, State, And Local Tax Incentives

Enhancing Returns From Opportunity Zone Projects By Combining Federal, State, And Local Tax Incentives To Bolster Community Impact

Skeptics may call the federal Opportunity Zone (OZ) program a tax dodge for the wealthy, but there is strong bipartisan support for the program at the federal, state, and local levels. Furthermore, underserved communities (and the small businesses therein) could benefit from billions of dollars in new investments in long-term capital that they might not have received through conventional bank loans or government programs—especially given the current unique and challenging economy. The findings noted in this article are based on the authors’ presupposition that President Biden’s proposed tax increases have increased interest in the deferral and ultimate tax exemption aspects of the OZ program, and investment momentum is likely to continue for the foreseeable future.

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