Am Law 100 firm Polsinelli has established its newest practice, the Opportunity Zones Practice Group, responding to the program created by the Tax Cuts and Jobs Act.
The firm’s new practice will work with clients to structure investments compliant with the law in Opportunity Zones across the country.
“We have been creating funds for developers, high-net-worth individuals and investors for months, as well as traveling the country to discuss the laws premise with a wide variety of stakeholders in this new marketplace,” said Korb Maxwell, Polsinelli shareholder. “The innovation in this government program is its ability to unleash the market through minimally constrained capital into these zones. We’re actively helping our clients navigate this new asset class.”
This summer, the U.S. Department of Treasury and Internal Revenue Service (IRS) unveiled Opportunity Zones in every state, nominated by governors and certified by the Department of Treasury. Opportunity Zones have been designated to various low-income areas with a goal to stimulate development in economically distressed communities. The program allows taxpayers to re-invest private capital gains and defer and reduce capital gains taxes in “Qualified Opportunity Zones.”
“Opportunity Zones will fundamentally change these designated area over the next 10 years,” said Maxwell. “This law will flood these areas with capital investment and will help to smooth the uneven recovery we have seen since the Great Recession.”
Polsinelli’s cross-disciplinary team of real estate, tax and corporate attorneys are well-positioned to help investors, developers and fund managers determine the right approach and how to qualify for the program’s incentives, all while complying with the program’s legal requirements. The firm’s Opportunity Zones Practice Group offers clients many insights — from structuring long-term real estate and business investments, to fund formation, to reviewing tax requirements that optimize the full extent of the program.
