Ask A Question

How will the stacking of other tax credits impact Opportunity Zone investments?


Answers
  • Joseph Smith
    April 28, 2019

    Stacking tax credits (like the low-income housing tax credit or the new markets tax credit) can enhance returns on OZ investments. Care must be taken, however, when combining these other programs with OZs to ensure the rules from all programs are complied with.

  • Paul Wassgren
    April 01, 2019

    Based on the current proposed rules and regulations, other tax credits may be utilized in combination with a QOZ business.

  • Ronald Fieldstone
    April 02, 2019

    No effect. It's all additive.

  • Phil Jelsma
    April 01, 2019

    There doesn’t seem to be any restriction on stacking other credits.

  • Peter McNeil
    April 01, 2019

    There is no impact. Using the tax benefits of the Opportunity Zone investment does not limit any other tax benefits, such as federal tax benefits. At present, I am not aware of any state tax benefits that would be reduced or eliminated by taking advantage of the Opportunity Zone benefits. If there is a specific tax benefit you are concerned about, please identify it and any possible impact could be researched. The universe of state and local benefits is large and something may have missed our attention.

  • Kostas Poulakidas
    April 01, 2019

    One of the great benefits of Opportunity Zone investment is it can be coupled with various tax credits and incentives such as TIF, abatement, state and local incentives, grants and EB-5, thereby strengthening the overall project and investment. We have done so with Opportunity Zone real estate investment projects.