Breaking Down the Opportunity Zones Transparency, Extension and Improvement Act
In September of 2023, the US House of Representatives introduced the “Opportunity Zones Transparency, Extension and Improvement Act” (H.R. 5761). If passed, this bipartisan legislation would:
Extend the investment and gain deferral period for two years (December 31, 2028)
Re-activate the 10% basis step-up.
Reinstate and expand reporting requirements to promote transparency, ensure the program is operating as intended, and allow for the tracking of long-term outcomes in designated communities.
De-certify high income Opportunity Zones and provide states with the opportunity to designate new census tracts to replace any that are disqualified.
Allow investments through a Fund of Funds, potentially helping smaller communities and projects raise equity more easily.
Establish a State and Community Dynamism Fund to help provide operating support and technical assistance to underserved communities.
As with any investment, it is important to keep your expectations realistic and research your options before making any decisions. Legacy can help you determine which investment approach and real estate asset classes are right for you based on your unique goals, schedule, skill level, and finances.
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This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance.
There are material risks associated with investing in private placements, DST properties and real estate securities including illiquidity, general market conditions, interest rate risks, financing risks, potentially adverse tax consequences, general economic risks, development risks, and potential loss of the entire investment principal.