The Joint Economic Committee held a hearing on May 17 on Opportunity Zones, a new tax incentive designed to spur investment in distressed areas. By providing for the deferral of capital gains invested in Opportunity Funds and eliminating tax on certain gains realized from Opportunity Fund investments, the program provides a strong incentive to drive considerable investment in multifamily housing. Hearing witnesses focused on the necessity of Treasury guidance clarifying the types of investments, including housing, that will qualify for tax incentives.
In recent days NMHC/NAA have asked lawmakers to work with the Treasury Department to make the Opportunity Zones program as effective as possible and that policymakers encourage the Treasury Department to ensure:
- Multifamily housing is a qualified investment for Opportunity Funds.
- Multifamily properties receiving other tax benefits, including Low-Income Housing Tax Credits, Historic Tax Credits and New Markets Tax Credits, are qualified investments for Opportunity Funds.
- Properties of all sizes be able to receive Opportunity Fund financing.
More information on the Opportunity Zone program can be found here.