By Bill Mears
As the 2019 fiscal year draws to a close, it is now almost two years after the Tax Cuts and Jobs Act was passed and more than a year and a half since the first opportunity zones were designated. Designed to spur economic development by delaying taxation on capital gains, the impact so far for investors has been somewhat nominal, to say the least (especially in our market). Experts predicted that 2019 would be the year of opportunity. The three trends they recommend watching still apply as we head into the next decade. Will 2020 be the year of opportunity?
Three trends to watch:
– Projects will continue to be pragmatic, measured by traditional metrics of investment that include proximity to demand-drivers (hospitals, universities, government centers, and other stable institutions
– Low number of opportunity zone implementations may continue due to unclear regulations
– A focus on state and local policy including additional incentives available (e.g., tax increment financing)