Who says our Congress is not interested in bi-partisan legislation?
U.S. Representatives Tim Burchett (TN-02) and Henry Cuellar (TX-28) introduced a bi-partisan piece of legislation entitled the Opportunity Zone Extension Act of 2021. This bipartisan legislation would extend the Opportunity Zones program until the end of 2028.
“The Opportunity Zones program was making a difference in East Tennessee communities and underserved areas around the country before the COVID-19 pandemic rocked our economy,” Rep. Burchett said. “Extending this program would give investors additional time to provide meaningful financial support to businesses and create quality, good paying jobs in Opportunity Zones.”
According to Congressman Henry Cuellar. “This critical legislation will help stimulate economic growth, job creation, and provide support to underdeveloped communities. Through this legislation we will be able to help accelerate our economy’s recovery from the pandemic. I am committed to making sure everyone has access to opportunity and can achieve the American dream.”
Currently, the Opportunity Zones program allows participating investors to defer taxes on capital gains that are invested in designated Opportunity Zones until the end of 2026. Rep. Burchett’s and Rep. Cuellar’s bill would extend this date and allows capital gains to be deferred until the end of 2028.
Opportunity Zones are located in economically distressed areas across the United States.
According to the sponsors, extending the Opportunity Zones program by 2 years is intended to attract private sector investment in underserved communities, building on pre-pandemic success and helping them come back stronger than before.
While it is too early to tell if this piece of OZ extension legislation is likely to get any legs given the current pressures on Congress, its bi-partisan support puts it in good stead for future conversation and, potentially for action, once Congress deals with the current Covid bill and likely an infrastructure bill. We will keep our eyes and ears open and report back on developments on this front.
Duane Morris has an active Tax Credits and Opportunity Zone Team to help organizations and individuals plan, respond to, and invest in Opportunity Zones and low income areas throughout the USA, including the US Virgin Islands and Puerto Rico using tax credit equity and standard equity. We have closed over 63 OZ deals since their inception and are actively working on over 33 OZ projects for owner/developers, investors and business owners. We would be happy to discussion your proposed project with you. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.
If you have any questions about this post, please contact Brad A. Molotsky, Art Momjian, Scott Gluck, Lee Potter, Keli Isaacson Whitlock, Anastasios Kastrinakis, or the attorney in the firm with whom you are regularly in contact.
Take care and stay safe.