Qualified Opportunity Zone Investing 101

In Congress, political discourse took a temporary break from feuding when both sides supported creating significant tax incentives for Qualified Opportunity Zone (QOZ) investing — as part of the 2017 Tax Cut and Jobs Act. The Act was co-authored by Sens. Cory Booker, a Democrat from New Jersey, and Tim Scott, a Republican from South Carolina.

The concept centers around tax incentives for those who invest capital in designated areas around the country that could benefit from economic development. The idea is to reward investors who are helping in areas where revitalization is most needed.

How much money is flowing into Opportunity Zones is hard to gauge. However, research firm Novogradic reported that over $12 billion streamed into Qualified Opportunity Zone funds during 2020, and that number is expected to be significantly higher in 2021 and even higher going into 2022.

Qualified Opportunity Zones

So why are investors flocking to Qualified Opportunity Zones – or “QOZs” –  in staggering numbers?

It is because of tax breaks, of course, and significant breaks at that.

Investors are lining up for