Opportunity Zones
Qualified Opportunity Zones (QOZ) are a hot topic in economic development and the investment world alike, but wading through the rules and advantages takes time, and expertise.
Created by the Tax Cuts and Jobs Act in December of 2017, the final set of regulations around their use was released in December of 2019.
In order to create the zones within our state, local communities proposed census tracts that met “distressed” requirements to the Governor and he designated 25 zones in the state. While several tracts were proposed in Yellowstone County, only one was designated, and it is in the heart of our downtown on up to Poly Drive.
The main purpose of QOZs is to spur economic development by providing investors with tax benefits if they make a long-term investment in a QOZs. Investments can be both real estate development as well as business investments. In both scenarios, there are deferred capital gains – the largest of which is realized if the money remains in the investment for a full ten years. In that scenario, all post investment gains are fully tax exempt.
In order to more simply deploy dollars into QOZs, several opportunity funds have been created, some with specific investment goals such as social impact, venture capital investment, and housing development. While these pooled funds are one option, it is also possible to develop a fund for a single-project purpose.
Utilizing QOZs certainly takes the assistance of tax experts. We have put together a page with links to both local and national resources that lead the industry in their knowledge.
Qualified Opportunity Zone Map & General Information: https://commerce.mt.gov/opportunityzones
Montana Expert Resources:
Eide Bailly
Website: https://www.eidebailly.com/opportunity
QOZ Contact: Ron Yates
Parsons Behle & Latimer
Website: https://www.parsonsbehle.com/attorneys/ross-keogh
QOZ Contact: Ross P. Keogh