Chiesa Shahinian & Giantomasi (“CSG”) has announced the formation and launch of its Qualified Opportunity Zone Group, which will advise investors, fund managers, redevelopers and business owners on the legal and regulatory requirements needed to successfully participate in the federal Qualified Opportunity Zone Program.
CSG’s Qualified Opportunity Zone Group is led by Sean M. Aylward and Francis J. Giantomasi, and consists of additional attorneys representing the firm’s Real Estate, Development & Land Use; Tax; Corporate & Securities; Environmental; Public Finance; and Trusts & Estates Groups.
Established by the Tax Cuts and Jobs Act of 2017, the Qualified Opportunity Zone Program is designed to promote and drive long-term investment in designated low-income areas by allowing taxpayers to defer, and potentially reduce, the recognition of capital gain if the taxpayer invests capital gain proceeds in a Qualified Opportunity Fund. Further, if the taxpayer holds the investment in the Qualified Opportunity Fund for at least 10 years, the taxpayer will be allowed to exclude the entire gain on all appreciation of the Qualified Opportunity Fund during the investment period. Recent estimates indicate that there is approximately $6 trillion of unrealized capital gain across the U.S. available to be invested in the Qualified Opportunity Zone Program. New Jersey, with its 169 designated Qualified Opportunity Zones, is expected to be a significant beneficiary of the Qualified Opportunity Zone Program.
Giantomasi says he applauds the Qualified Opportunity Zone Program and looks forward to assisting those seeking to take advantage of this new tool: “This program will be tremendously beneficial to both designated communities and investors alike. Communities will benefit from an influx of private capital that will spur innovative projects, and investors’ portfolios will find great relief in the program’s tax minimization component. It’s a win-win.”
“Members of our multidisciplinary Qualified Opportunity Zone Group bring significant firsthand experience helping clients participate in economic revitalization initiatives,” added Aylward. “This experience – coupled with our deep real estate, transactional and tax practices – translates into value-added insight and guidance for stakeholders at all stages of the implementation of the Qualified Opportunity Zone Program.”