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BECKER: THE OPPORTUNITY ZONE EXPERTS

Becker is in a unique position to advise on Opportunity Zone investment, and the related issues that may arise in conjunction with participation in the program.

Becker offers an A to Z suite of practice areas necessary to help you understand and implement your strategies for participation in the Qualified Opportunity Zone program whether you are a public entity, developer, or investor. We understand that operating in this space requires a cross-practice, multifaceted approach to navigating the policy, logistical, legal, and regulatory hurdles that may arise. Our multi-disciplined team of government policy, real estate, construction, public-private partnership (P3), corporate, and estate planning professionals collaborate to advise and provide full-service guidance to educate clients about the program, evaluate whether the program is consistent with client goals, address legal and regulatory hurdles, and help execute engagement in the program.

ABOUT OPPORTUNITY ZONES

The program provides a tax incentive for investors to re-invest their unrealized capital gains into so-called “Opportunity Funds” that are dedicated to investing into state-designated Opportunity Zones. The sites are chosen by the state and then approved by the Federal government.

8,761 communities in all 50 states, D.C. and five U.S. territories have been designated as Opportunity Zones, including 427 Opportunity Zone sites in Florida alone. These communities present both the need for investment and significant investment opportunities:

  • Average poverty rates of 32 percent compared with a U.S. average rate of 17 percent.
  • Unemployment rates 1.6 times higher than the average U.S. census tract.
  • Median family income on average 37 percent below the state median.

Under the program, individuals and other entities can delay paying federal income tax on capital gains until as late as December 31, 2026 if those gains are invested in “Opportunity Funds” that invest at least 90% of their assets in businesses or tangible property located in low-income areas designated as Opportunity Zones. The tax benefits could reduce the cost of capital for these projects, making them more viable, especially when paired with other development incentives like the New Markets Tax Credit. Congress intended that the OZ program operate with minimal restrictions in order to maximize investor participation and thus economic activity and job creation.

Investors benefit when they invest the amount of prior capital gains in these designated Opportunity Zones.

ECONOMIC BENEFITS

Developing Communities

Opportunity Zones represent more than a simple tax break – they are a powerful vehicle for bringing economic growth to communities that need it most, but have not had the investment historically to independently create jobs, build environments to incentivize business relocation, or increase the quality of life for their residents. Opportunity Zones can help create momentum in communities that need a boost in their economic recovery efforts, representing a vital new funding opportunity for cities and counties throughout the country.

The Becker QOZ Team provides a full spectrum of cross-practice services to help fund sponsors, cities/counties, developers, innovators, and investors understand and implement this new program in order to unlock its full investment potential.

Who Should Participate in the OZ Program?

This program will have numerous stakeholders representing an equal number of perspectives, including:

  • Cities, Counties and Community Redevelopment Associations
  • Fund sponsors
  • Real estate developers
  • Public/Private Colleges and Universities
  • Innovators and Tech Startups
  • Family Offices, Institutional and Private Investors

A Summary of the Newly Announced Second Set of Regulations

At White House Conference on Opportunity Zones, President Trump and Secretary Mnuchin Announce Second Round of Regulations

The Department of the Treasury released its second set of proposed rules for the tax-incentive program designed to encourage economic development in distressed areas throughout the U.S. known as the Qualified Opportunity Zone Program.

Becker Senior Government Relations Consultant Clarence Williams attended an invitation-only White House conference on Opportunity Zones where Secretary Steve Mnuchin outlined some of the more high-profile proposed regulations before and after speeches given by HUD Secretary Ben Carson, Council on Economic Advisors Chairman Kevin Hassett, and President Trump himself.

The 169-page proposal gives investors interested in these areas additional leeway and a more flexible timeline, according to Secretary Mnuchin. The rules also give investing funds a one-year grace period to sell assets and reinvest the proceeds, thus avoiding penalties intended to prevent funds from sitting on the cash.

View Article

LIVE NEWS FEEDS

National

  • NAACP Unanimously Passes Resolution Calling For Trump's Impeachment
    24 Jul 2019 02:08
    Politics Daily The NAACP, the country’s oldest and largest civil rights organization, enthusiastically passed a resolution Tuesday calling for the impeachment of President Donald Trump. Delegates from NAACP chapters across the country voted unanimously to move forward …

  • California recognizes commercial revamp of former Vallejo shipyard
    24 Jul 2019 02:02
    North Bay Business Journal An official of the governor’s economic development team Tuesday toured the cavernous hangers where workers turn out premanufactured homes in what once was a Naval shipyard. “We’re very interested in regions of the state that are trying to help create new …

  • Brightscape Introduces Taxwise Method for Investors To Protect...
    24 Jul 2019 00:17
    SF Gate Stock market at all-time high - People are reluctant to sell because of associated capital gains taxes - Utilize a feature of the 2017 Tax Cut and Jobs Act to achieve this. MIAMI (PRWEB) July 23, 2019 Prudent investors now are concerned about protecting …

  • 77% Of People Want To Learn How To Live More Sustainably
    23 Jul 2019 23:56
    Forbes A significant majority of Americans and Australians are intent on learning more about humanity’s impact on the environment, and what they can do to live a more sustainable lifestyle. 913 people in both countries were part of a cross-generational study led …

  • Letters (July 24, 2019)
    23 Jul 2019 22:50
    www.recordnet.com Solution for Brookside golf club After reading the article and editorial in The Record about the proposed homeowners assessment in the Brookside Country Club area, I came up with a simple solution. The city should give a $500,000 annual subsidy to …

Florida

  • Elite Opportunity Fund Launches 1st National Energy...
    17 Jul 2019 14:17
    SF Gate Elite Opportunity Fund Launches 1st National Energy Opportunity Zone Fund to Attract Investors in the Oil & Gas Industry The Fund has been Authorized to Raise up to $250 million Focusing on Opportunistic Oil & Gas Business Investments JACKSONVILLE, …

  • HG Portfolio Opportunity Zone Fund Launches to Attract Sophisticated Investors for Cannabis Businesses and Opportunity Zone Real Estate
    17 Jul 2019 09:53
    University Chronicle The Fund has been Authorized to Raise up to $250 Million Focusing on Cannabis Businesses and Opportunity Zone Real Estate Acquisitions REDONDO BEACH, Calif. (PRWEB) July 17, 2019 HG Portfolio Opportunity Zone Fund launches to attract sophisticated …

  • Maryland: Expanding Opportunity For An Expanding Workforce
    08 Jul 2019 23:12
    Businessfacilities By the BF Staff From the May/June 2019 Issue Gov. Larry Hogan recently signed major legislation to advance one of his top priorities: bringing jobs and businesses to underserved communities. Senate Bill 581 extends benefits under the Hogan …

  • Beverly Hills Mayor to Discuss Anti-Tobacco Ordinance
    29 Jun 2019 13:32
    NBC Los Angeles Beverly Hills Mayor John Mirisch will make a presentation Saturday at the U.S. Conference of Mayors meeting in Honolulu on his city's recently adopted groundbreaking ordinance banning the sale of tobacco products. The Beverly Hills City Council voted 5 …

  • Major opportunity zone fund invests in San Marco Crossing
    28 Jun 2019 14:17
    Bizjournals Jun 28, 2019, 8:41am EDT Updated Jun 28, 2019, 10:06am EDT A $500 million opportunity zone fund has taken a stake in Chance Partners’ San Marco Crossing project, a 486-unit multi-family development set to break ground on Kings Avenue next week. EJF Capital …

ADDITIONAL RESOURCES

Treasury-Regs_Page_01-Outline
TREASURY REGULATIONS
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Opportunity-Zones-Summary_Page_1
OPPORTUNITY ZONE SUMMARY
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Treasury-Releases-Proposed-Opportunity-Zone-Regulations_Page_1
PROPOSED OPPORTUNITY ZONE REGULATIONS
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Opportunity-Zones-PPT
THE QUALIFIED OPPORTUNITY ZONE PROGRAM
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BECKER’S UNIQUE CAPABILITIES

Government Law and Lobbying

Our Government Law and Lobbying practice educates entities on the development of investable projects; advises on regulatory considerations related to organizing and operating Opportunity Funds; advises public clients on complimentary funding mechanisms; hosts presentations and speaking engagements on the QOZ program as the program continues implementation; and, continues to follow regulatory and statutory progress providing advocacy as needed.

Real Estate

Real Estate Law has been a core practice for Becker since its founding in 1973. Our clients include national developers, business and property owners, and financial institutions. The firm’s Real Estate attorneys have helped shape the local landscape through representation of developers of multi-family and single-family residential communities; business and property owners; and financial institutions. They have represented clients in the successful acquisition, financing, development and sale of all types of unimproved land and improved properties for residential and commercial use, including large land assemblages, major office buildings and office parks, shopping malls and centers, luxury hotels and resorts, condominiums and multi-family housing projects.

Construction Law and Litigation

With one of the largest, dedicated teams of Board Certified Construction attorneys, Becker’s Construction Law Practice Group is well-known nationally for its knowledge of the construction industry and experience effectively protecting the interests of its clients. Our construction attorneys represent clients in both transactions and disputes ranging from single- and multi-family dwellings to large commercial buildings, planned unit developments, multi-use retail, industrial and governmental projects.

Public, Private Partnership (P3)

As QOZs are designated based on community statistics, many zones are densely residential areas, where large-scale development may prove difficult. While 90% of Opportunity Zone funds must be invested inside the QOZ, remaining investment for joint projects may extend outside of those boundaries, where additional investment may be needed to complete multi-phase projects. Becker’s Public, Private Partnership (P3) team has proven public and private sector knowledge, experience and contacts to assist governmental entities and private businesses and entities seeking to partner on public facilities projects.

Corporate Law

Becker’s Corporate Practice Group takes pride in quarterbacking our clients’ transactions and focuses on closing. We consider your success, our success. Among other areas, our New York, Florida, and New Jersey-based team handles Asset Protection, Wealth & Business Preservation; Broker-Dealers & Investment Advising; Private Funds; Intellectual Property; Capital Markets; Private Equity; Corporate Tax Transactions and Planning; and, Tax Controversies.

IN THE NEWS

Opportunity Zones Seen as Bonus
Rather Than Driving Force on Deals

May 16, 2019

View Article
An aerial graphic showing the 3-acre site, located in an opportunity zone at 17th Street and Biscayne Boulevard, that's being sold (foreground) and existing high-rises to the east.

ZONE MAP

Florida-Locations
For a list of Florida’s Qualified
Opportunity Zones, Click Here
for a searchable map of all Qualified Opportunity Zones, Click Here

CONTACT US

Opportunity Zones are an important stepping stone to wealth creation in low-income communities and opportunity for businesses and investors to bring jobs and development into these neighborhoods. Your Becker & Poliakoff team is immediately ready to partner with you in this fast-moving opportunity.

Government Law and Lobbying

FEDERAL

CW-Bio-Magenta

Clarence Williams

Senior Government Relations Consultant

202.621.7122

CLWILLIAMS@beckerlawyers.com

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STATE (Florida)

ESB-Bio-Magenta

LOCAL (Florida)

NGM-Bio-Magenta

Nicholas G. Matthews

Senior Government Relations Consultant

954.985.4135

NMATTHEWS@beckerlawyers.com

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Construction
Public, Private Partnerships (P3)
JBD-Bio-Magenta

Jennifer Bales Drake

Shareholder

954.985.4113

JDRAKE@beckerlawyers.com

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Real Estate
JBD-Bio-Magenta

Jennifer Bales Drake

Shareholder

954.985.4113

JDRAKE@beckerlawyers.com

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Corporate
RCB-Bio-Magenta

Robert C. Brighton, Jr.

Shareholder

954.987.7550

RBRIGHTON@beckerlawyers.com

View Full Bio

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