Companies May Have to Pass on Extra Opportunity Zone Benefit

An extra benefit available to some corporations considering tax-advantaged investments in opportunity zones may be of limited use with many businesses struggling to stay afloat during the coronavirus pandemic.

The opportunity zones policy, enacted by the 2017 tax law, was intended to steer wealth to areas that need it by offering capital gains tax breaks to investors. Now, under IRS regulations and the third coronavirus response law, corporations that invest in opportunity zones can essentially split up their gains and losses and get tax breaks for both.

“I think it’s a fantastic idea. I think it’s very creative,” said Rich ...