Investments must be made in Qualified Opportunity Funds to receive the investor benefits just detailed.
Must be certified by the U.S. Treasury Department.
Must be organized as a coproration or partnership for the purpose of investing in Qualified Opportunity Zone Property.
Must hold at least 90% of their assets in Qualified Opportunity Zone Property.
Qualified Opportunity Zone property includes newly issued stock, partnership interests, or business property in a Qualified Opportunity Zone business.
Opportunity Fund investments are limited to equity investments in businesses, real estate, and business assets that are located in a Qualified Opportunity Zone. Loans are not eligible for the tax incentives. Opportunity Fund investments in real estate are subject to a substantial rehabilitation requirement.
Examples of potential Opportunity Funds:
A $100 million national private equity fund that provides growth capital to lower middle market operating businesses located in Opportunity Zones.
A $20 million local fund that provides the equity capital for the $100 million redevelopment of a closed shopping mall into a mixed-use development that includes new neighborhood retail and workforce housing.
A $50 million disaster area fund that develops and leases new affordable housing for residents displaced by the 2017 hurricanes and forest fires.
