I read that education technology is a rapidly growing market. Is it actively involved in the OZ industry? Would this industry work well with the OZ guidelines?
Any industry can get involved in OZs as long as it's not a defined "sin business," except perhaps industries where assets are heavily concentrated in securities or the like. Education technology sounds like it'd be a fit as long as the entity meets all OZ compliance requirements.
I don't really see any connection between the two industries one way or another. In fact, OZ is not an industry. They are geographic areas that are associated with a federal tax incentive program. Basically, if there is a technology business that exists within a Qualified Opportunity Zone and meets all the tests for a qualifying business, it can benefit. But I would say, generally speaking, it does not feel to me like the most natural fit.
Absolutely, as long as the business can do the work in the zone.
Yes, technology companies, as well as most other active businesses, can benefit greatly under the OZ program.
Yes, absolutely.
As long as the business qualifies as an Opportunity Zone business, the program can definitely attract investment. It is important to build a good business case and support the call for investors.
Any business that would be economically viable inside an Opportunity Zone would be suitable as an OZ business. If the business is not economically viable, the tax benefits of deferral will not make up for an economic loss.
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