Which states provide additional state-level incentives and allowing more credits to taxpayers investing in OZs in their state?

Answers

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  Nelly Mitford

  Mitford Properties

  October 23, 2019

  The Opportunity Zone act is offered in 31 states and U.S. territories. At this time it seems like Puerto Rico is offering the most advantages and/or credits when it comes down to OZ investments. The government of Puerto Rico has passed a resolution, whereas the code provides for the following incentives to opportunity funds that invest in Puerto Rico: a fixed 18.5% income tax rate and 0% on eligible distributions to its owners; a transferrable investment credit of up to 25% of the amount invested; an OFZA 25% exemption on real and personal property taxes, which may be increased to a 75%; and an expedited permit process. I am not a CPA or investment advisor, and you will need to make sure you discuss your specific needs with a CPA and/or attorney.

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  Matthew Rappaport

  Falcon Rappaport & Berkman

  October 22, 2019

  I wouldn't be surprised if some of the large-firm thought leaders compiled public lists of the state-level OZ incentives across the U.S. Alternatively, you could call the economic development authorities in states where you're seeking to invest and ask them directly what kinds of incentives are available.

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  Zaida Ricker

  Ridge Policy Group

  October 24, 2019

  While I can't speak to every state, there are several programs in Pennsylvania that could overlap with Opportunity Zones. For example, PA's Keystone Opportunity Zone program (KOZ) provides state and local tax abatements to businesses and residents located in a geographically designated zone. There is also an incentive program that provides tax credits to for-profit companies less than eight years old operating within specific targeted industries within the boundaries of a Keystone Innovation Zone (KIZ). There is some overlap between KOZs, KIZs, and Opportunity Zones in Pennsylvania.

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  Brad Cohen

  Jeffer Mangels Butler & Mitchell

  October 21, 2019

  They have a state income tax deduction and possibly other benefits. You can search the web and find a list.

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  Maria De Los Angeles Rivera

  Kevane Grant Thornton

  October 24, 2019

  I understand several states and localities are enacting new and more incentives to attract investment. In the case of Puerto Rico, we have a very strong incentives program that has been in place for many decades. In addition, recent legislation will grant special incentives (reduced rates, ITC, expedite permits) for priority projects as defined.

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