White House Hosts Opportunity Zone Conference: New Rules Will Kick-Start Entrepreneurship

By at 23 April, 2019, 7:46 am

Small Business Insider

“I’ve never seen any piece of legislation that allows more collaboration between Federal, state, and local government.” — Mayor George Flaggs, Vicksburg, MS

It was a big day for Opportunity Zones on April 17. The White House hosted an Opportunity Zone conference, and the U.S. Treasury released proposed rules that provide clarity for investors, entrepreneurs and economic development officials. SBE Council president & CEO Karen Kerrigan and member Jason Duff – an entrepreneur and founder of Small Nation – attended the conference.

In a media release following the event, Kerrigan commented that both the event and proposed rules will help to fuel the momentum and early success of Opportunity Zones:

“At the conference, Secretary Mnuchin said the biggest opportunity regarding Opportunity Zones ‘is for people to start businesses.’ The proposed rules pave the way for bold entrepreneurship and new businesses in Opportunity Zones. They clarify key issues to support diverse business models and types of businesses, offer flexibility, and are investor friendly. At the same time, the rules reinforce the important principle that long-term investment is critical to the success of these distressed areas,” said Kerrigan.

With over 8,700 designated opportunity zones across the U.S., the Treasury Department estimates that $100 billion in private capital will be invested in these areas – namely in new businesses and property improvements – as a result of the new tax incentive. At the conference, Secretary Mnuchin reported that nearly one hundred Opportunity Zone Funds have already been established. (See the latest database here.)

The Opportunity Zone provision, included as part of the “Tax Cuts and Jobs Act” and signed into law in December 2017, allows investors to defer their liability on a capital gain if the realized gain is invested in businesses or to improve properties in the zones.

SBE Council president & CEO Karen Kerrigan, and Small Nation founder (and SBE Council member) Jason Duff attended the White House conference.

White House Resources and Opportunity Zone Update:

●  Opportunity Zone Fact Sheet

●  Opportunity Zones Frequently Asked Questions (IRS FAQs)

●  White House Opportunity and Revitalization Council Implementation Plan – The Implementation Plan can be found here and the media release on the plan here.

●  Opportunity Zone Mapping Tool (find an opportunity zone.)

Helpful Articles on the Latest Round of Guidance and What It Means for Investors and Entrepreneurs:

●  BISNOW: The 7 Most Important Things We Learned From the Latest IRS Opportunity Zones Regulations

●  FORBES: Opportunity Zones are Open for Business – 5 Key Features of the New Guidance

●  NOVOGRADEAC: Clarity Provided by Second Tranche of Treasury Regulation to Incent More Investment in Opportunity Zone Businesses

SBE Council will continue to monitor the implementation of the new rules, and share the latest information and activity that is occurring at the federal, state and local level that are helping Opportunity Zones to succeed.

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