Brian Collins of American Banker and National Mortgage News recently reported on the Investing in Opportunity Act, the new program that potentially allows individuals and corporations to defer taxes on capital gains to invest in funds to finance projects in targeted “Opportunity Zones.”
Opportunity Zones are defined by census tracts which, according to OFN Chief External Affairs Officer, Jennifer Vasiloff, match up where NMTC are allowed.
"The next step is to certify Opportunity Funds. A number of CDFIs are trying to figure out if there is a role for them indirectly establishing these funds or partnering with other Opportunity Funds," Vasiloff told Collins.
Much is still unclear with how things will play out and if banks will be able to create their own Opportunity Funds, "I would anticipate that Treasury would certainly allow banks to invest in Opportunity Funds,” said," said Joseph Pigg, senior counsel at the American Bankers Association.
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