Qualified Opportunity Zones & Funds
Critical OZ Update Training
Greetings from the Washington State Department of Commerce and National Development Council (NDC)!
New Draft Regulations
Earlier this month, U.S. Treasury released a second round of draft regulations. Treasury will accept comments on the proposed regulations for 60 days, but in the meantime, investors can rely on the them as they are currently written. These articles by KPMG and Novogradac provide excellent analyses. Some initial high-level takeaways are below, including what page you can find more details. We will continue to keep you updated as we learn more!
- More businesses can qualify. The first round of draft regulations required that 50% of a business’s income be derived from within the Opportunity Zone. This latest round of draft regulations adds some alternative ways to qualify based on employee hours and wages and management or operational functions (p.27).
- Leased land can qualify. Treasury clarified that an OZ business can lease land within an OZ rather than purchase it outright. The regulations specifically call out that this will help allow investment on Tribal lands (p.19)
- Funds have at least 6 months to deploy capital into projects (p.33).
- Funds have one year to reinvest funds if they sell an asset (p.34). This allows for greater flexibility for multi-asset funds.
There is more!
IRS has updated its FAQs. The White House Opportunity and Revitalization Council (chaired by HUD) released an implementation plan outlining how it will implement reforms and initiatives to strengthen federal resources in Opportunity Zones. While the second round of regulations doesn’t specify new impact reporting requirements, IRS has requested feedback on this issue and it appears some level of additional reporting is imminent.
Did we miss something? Definitely. The resources provided here are certainly not exhaustive. If you uncover additional resources and want to share them statewide, please email them to email@example.com for inclusion in future updates.
City of Spokane wants to promote Spokane Opportunity Zone Funds investing in Spokane's 11 Zones and is seeking Letters of Interest.
A Directory with 50+ OZ funds created by the Opportunity Zone Association of America (OZAA)
Spokane's 11 Census Tracts Designated are aligned with our Target Investment Areas
Clicking the images opens up Facts Sheets on each of our Spokane Zones
Lower South Hill & Medical District
University District (south of the Spokane River)
Sprague Union District
The Yard & Market St. Area
Portion of West Plains and International Airport
Why these areas?
- Economically distressed residents
- Attracting investment
- Targeted Investment Areas
- Aligned with other incentive areas
- Partners in place Public Development Authorities and Business Improvement Districts
- Pipeline projects ready go
- Opportunities for new investment
Alignment with Strategic Plan
- Grow targeted areas – Invest in key neighborhoods and business centers; especially PDA's
- Marketing Spokane – Market Spokane's urban advantages and experiences to grow jobs and economic development
- Public amenities – Invest in key public amenities and facilities
- Regional collaboration – work collaboratively with regional partners