Part of the recently passed Tax Cuts and Jobs Act (P.L. 115-97) has drawn attention from entrepreneurs, small businesses, large companies, banks, community development authorities, governors, and mayors across America. A community revitalization program, the new tax law allows states, the District of Columbia, U.S. possessions (e.g. US Virgin Islands) and Puerto Rico (collectively “states”) to designate qualified opportunity zones (QOZs) to encourage new capital investment in low-income census tracts by allowing taxpayers to temporarily defer the inclusion of capital gains returns. To encourage long-term investments in opportunity zones, investors in self-certified opportunity zone funds may partially exclude from gross income a portion of their gains reinvested in the fund after holding the investment for at least five years, and they may permanently exclude post-acquisition appreciation in the investment after 10 years.

The Opportunity Zone program is the first new national community investment program in over 15 years and has the potential to be the largest economic development program in the U.S. This broad legislation will benefit many stakeholders from individual taxpayers, entrepreneurs, business owners and developers and fund sponsors.

Pat Cardwell and the Jardim Meisner team have developed a practice designed to assist business owners, franchisors and developers in taking advantage of the new tax law. Mr. Cardwell has quickly acquired an expertise in this area which also includes a legal affairs effort to communicate with other stakeholders and members of Congress concerning ways that the law might be approved or extended.

Pat Cardwell and the firm currently represent businesses and developers in:

• Creating, including the formation documents of Quality Opportunity Zone Corporations and Partnerships;
• Partnering with tax experts and providers in maintaining compliance with the new Law; Tax Compliance and Related Matters;
• Advise and structuring of businesses operating in QOZs;
• Asset, Property Management and Operational Issues
• Financing Components (Preferred Placement Memorandums and Financial Structural Documents)
• Startup entities.

For further information, please contact Pat Cardwell at Jardim, Meisner and Susser, PC.