OZs – Opportunity Zones – Insights From the Land of OZ

January 23, 2021September 8, 2026 by Duane Morris

IRS Extends Various Opportunity Zone Deadlines to March 31, 2021 given COVID-19

Taxpayers who recognized a capital gain in 2020 may have until March 31, 2021 to invest in a Qualified Opportunity Zone Fund (“QOF”), according to a new notice issued by the IRS last week.

On January 20, 2021, the IRS issued Notice 2021-10, which provided additional relief to taxpayers by postponing certain due dates to March 31, 2021.

Under Section 1400Z-2 of the Code, taxpayers normally have 180 days to invest capital gains in a QOF to be eligible for Opportunity Zone tax treatment.

One of the deadlines postponed by a previous relief notice was a taxpayer’s 180-day deadline for investing capital gain eligible dollars into a QOF. For any 180-day period that ended on or after April 1, 2020 and before July 15, 2020, the deadline was initially extended to July 15, 2020. Thereafter, under IRS Notice 2020-39 further relief for QOFs was granted to allow any 180-day period that ended on or after April 1, 2020 and before December 31, 2020, to be extended to December 31, 2020.

With their latest Notice, given the COVID-19 pandemic, the IRS again extended various deadlines again for QOFs and their investors to March 31, 2021.

In practical terms for an individual taxpayer, for any gain recognized on or after April 1, 2020 and before March 31, 2021, effectively, there is no 180-day period, rather, a March 31, 2021 deadline applies to invest their gain in a QOF. As such, the new IRS notice, gives some investors with 2020 capital gains (i.e., those with gains from April 1, 2020 to October 2, 2020) more time than originally anticipated for investment in OZs. For any gain recognized on or after October 2, 2020, the standard 180-day period will once again apply.

Other relief provided in the new notice applies to Qualified Opportunity Fund compliance deadlines, including extensions for complying with the 90% investment standard, the 30-month substantial improvement period, the 31 month working capital safe harbor, and the 12-month reinvestment period.

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 61 OZ deals since their inception and are actively working on over 38 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 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.

December 17, 2020May 28, 2026 by Duane Morris

New Markets Tax Credits and Opportunity Zones – Bill Proposed in the US Senate to make NMTC Permanent and prioritize grant funding in OZs

Earlier this week, 4 Senators introduced legislation that would make the new markets tax credit (NMTC) permanent and would seek to encourage further investment in opportunity zones (OZs).

Senators Marco Rubio, R-Florida, Mike Crapo, R-Idaho, Kelly Loeffler, R-Georgia, and Thom Tillis, R-North Carolina, cosponsored the Economic Empowerment for Underserved Communities Act.

The bill, a summary of which is attached, makes the NMTC permanent with a $5 Billion annual allocation adjusted for inflation.

Per Novogradac and the Senator’s office announcement, the legislation also encourages investment in Opportunity Zones (“OZs) by establishing representatives to facilitate participation in the OZ program, prioritizes grant assistance in OZs through the Health Resource and Services Administration, allocates $7 Billion to Community Development Financial Institutions (CDFIs), establishes a Small Business Investment Company facility to enhance access to venture capital for underserved groups and businesses affected by COVID-19, and extends Small Business Administration debt relief provisions from the CARES Act.

The NMTC is authorized only through the calendar-year 2020 round.

Senator Loeffler’s office released a summary of the bill.

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 61 OZ deals since their inception and are actively working on over 38 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.

December 14, 2020September 8, 2026 by Duane Morris

HUD – 12-15-20 Webinar on Opportunity Zones 1-3 PM EST – Leveraging Public and Private Resources

Check Out tomorrow’s HUD webinar on OZs – If Opportunity Zones are of interest to you, come and join the White House Opportunity and Revitalization Council and HUD for the third session of “Bolstering Growth in Opportunity Zones: Leveraging Public and Private Resources” focused on establishing policy tools and incentives, partnering with aligned organizations and measuring the impact, tomorrow, Tuesday, December 15, 2020 from 1:00 – 3:00 PM EST.

Registration is still open for Session 3: Develop Your OZ Action Plan to Build or Strengthen Your Local OZ Ecosystem.

Confirmed Speakers:
• Marc Alexander, Vice President, Investment Services, Invest Atlanta
• Stacy Cumberbatch, Managing Director, Blended Impact Labs
• Sherri Francois, Chief Impact Officer, SoLa Impact
• Ajit Mathew George, Founder, Second Chances Farm, LLC
• Dr. Eloisa Klementich, CEcD, President and Chief Executive Officer, Invest Atlanta
• Catherine Lyons, Director of Policy, Economic Innovation Group
• Dr. Leonard Mills, Chief Executive Officer, Verte Opportunity Fund
• Daffney Moore, Chief Opportunity Zone Officer, St. Louis Development Corporation
• Dr. Brien Walton, Chief Executive Officer, Acadia Capital Management, LLC

You must have a HUD Exchange account to register. Follow these instructions for registering.

Duane Morris has an active 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. We have closed over 61 OZ deals since their inception and are actively working on over 38 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 Art Momjian, Scott Gluck, Lee Potter, Keli Isaacson Whitlock, AK Kastrinakis, or the attorney in the firm with whom you are regularly in contact.