Today, a bipartisan group of legislators introduced a bill that, if passed, is likely to bolster the Opportunity Zones program by adding an extended deferral period, increased flexibility, and robust reporting requirements to the federal tax incentive.
The legislation, H.R. 5761, is likely a revamped version of the "Opportunity Zones Improvement, Transparency, and Extension Act," which was originally introduced in 2022 but never passed. The text of the bill has not yet been released, but it is expected that the new law would, among other things--
- Extend the tax deferral period by two years, from the end of 2026 to the end of 2028;
- Introduce new flexibility in structuring Opportunity Zone transactions; and
- Create important new reporting requirements to measure the program's efficacy.
The Opportunity Zones program is a federal tax incentive designed to encourage investment in certain low-income census tracts across the United States. We will publish an update as soon as the official text of H.R. 5761 is released.
In the meantime, reach out to your contacts at Morris, Manning & Martin to discuss how this new legislation could create additional opportunities for your business.
