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How likely is it that the OZ regulation will get extended instead of sunsetting on Dec. 31, 2047?

How would they determine if the program has been a success or not?


Answers
  • Shawn Neidorf
    August 12, 2019

    I have no idea. I know better than to prognosticate for Congress.

  • Pat Cardwell
    August 12, 2019

    I’m guessing not likely soon.

  • Erik Kodesch
    August 11, 2019

    The sunset occurs much earlier. The designation of a census tract as an Opportunity Zone terminates in the 2020s, I think. There is no way to guess whether it will be extended. It largely depends on political issues.

  • Blake Christian
    August 10, 2019

    I think it is doubtful that the will extend the exit deadline beyond 2047, but it is possible that Treasury might consider expanding ending the deadline certainly in cases where a fund or asset cannot be disposed by the deadline. Program success will be evaluated by multiple critics, but from my perspective, the socioeconomic improvement in the OZ census tracts will be the best measure.

  • John Wegmann
    August 10, 2019

    The designation of QOZs now in existence will expire Dec. 31, 2028. The latest gain date eligible for deferral is Dec. 31, 2026. It is the ability to make a basis step-up election that expires Dec. 31, 2047. The likelihood that the dates will be extended is uncertain and will depend on politics and the popularity of the plan, as well as its actual or perceived effectiveness. The longevity of the program could be jeopardized if there are widely publicized and glaring abuses of the program. The precise criteria and mechanism for measuring the success of QOZs is evolving.