Overview
A multidisciplinary team of Maynard Nexsen attorneys is focused on the Opportunity Zone program. Our team works together seamlessly to assist fund managers, real estate investment companies, private equity investors, real estate developers, business owners, economic developers, government leaders, and others with all aspects of Opportunity Zone projects, including fund formation, risk assessment, and compliance with regulatory requirements. Front-end planning is critical in taking full advantage of the significant benefits offered by the Opportunity Zone program, and the Maynard Nexsen team has the expertise to advise clients throughout the investment process. Our experience in this area includes the following:
- Advising on Opportunity Zone rulemaking and compliance
- Reviewing and assessing Opportunity Zone diligence
- Structuring and forming Opportunity Zone funds
- Drafting offering memoranda and other related fund documents
- Structuring and documenting investments in Opportunity Zone projects and businesses
Since the inception of the Opportunity Zone program in 2017, the program has provided many benefits for individuals with capital gains, investors, real estate developers, and business owners. The One Big Beautiful Bill Act of 2025 (OB3) made the Opportunity Zone program permanent and introduced additional incentives for those looking to invest in rural areas.
The purpose of the Opportunity Zone program is to encourage investment in low-income communities by giving investors gain deferral by deferring payment of capital gains tax, tax reduction by stepping up investors’ tax basis for capital gains reinvested in an Opportunity Zone investment, gain elimination by allowing investors to permanently exclude from taxable income capital gains from the sale or exchange of Opportunity Zone investments held for at least 10 years, and depreciation recapture elimination by allowing investors, in some instances, to eliminate depreciation recapture on Opportunity Zone investments held for at least 10 years. To be eligible to utilize the Opportunity Zone program, a taxpayer must have a taxable gain event in which it seeks to reinvest the proceeds. The goal of the program is to unlock capital by encouraging taxpayers to sell property and invest the gain proceeds in Opportunity Zones.
Front-end planning is critical in taking full advantage of the significant benefits offered by the Opportunity Zone program, and the Maynard Nexsen team has the expertise to advise clients throughout the investment process.