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Build Opportunity with Ice Miller's Opportunity Zone Team


Created by the Tax Cuts and Jobs Act of 2017 to spur private investment in small businesses and in commercial and housing projects in low-income areas, the Opportunity Zone Initiative drives private investment to urban and rural low-income communities. Click one of the below icons to learn more.

Investors

Funds

Developers

Investors
Those willing to invest capital gains in areas designated as "Qualified Opportunity Zones" are potentially eligible for preferential tax treatment. Generally, investors may defer paying taxes on any capital gains if those gains are invested in Qualified Opportunity Funds within 180 days of realizing the gains. Investors receive a 10% step-up in basis in their investment if those gains are held in the Fund for five years and another 5% step-up if they hold for an additional two years (15% total) and such investments are made prior to December 31, 2019. Additionally, if investors hold their investment in the Qualified Opportunity Fund for at least 10 years, any capital gain realized when disposing their interest in the Fund likely can be excluded from the investors’ taxable income.

Investors

Investors

Investors
Those willing to invest capital gains in areas designated as "Qualified Opportunity Zones" are potentially eligible for preferential tax treatment. Generally, investors may defer paying taxes on any capital gains if those gains are invested in Qualified Opportunity Funds within 180 days of realizing the gains. Investors receive a 10% step-up in basis in their investment if those gains are held in the Fund for five years and another 5% step-up if they hold for an additional two years (15% total) and such investments are made prior to December 31, 2019. Additionally, if investors hold their investment in the Qualified Opportunity Fund for at least 10 years, any capital gain realized when disposing their interest in the Fund likely can be excluded from the investors’ taxable income.


Funds

Funds

Funds
Qualified Opportunity Funds are self-designated funds designed to invest in Qualified Opportunity Zones. Importantly, the Fund must invest at least 90% of its assets in property that qualifies as Opportunity Zone Property and/or in a company that qualifies as an  Opportunity Zone Business. A Fund must ensure that it satisfies the 90% threshold by the "testing date," which is generally both midway and at the end of the Fund’s taxable year.


Developers

Developers

Developers
The Opportunity Zone legislation is well-suited for real estate projects. For example, a developer could invest its own capital gains into a Qualified Opportunity Fund and utilize such funds to develop one of its projects within an Opportunity Zone. Alternatively, the developer could raise capital for a project by soliciting from Qualified Opportunity Funds set up by third parties. Developers utilizing Opportunity Zone funding must be cognizant of the numerous deadlines and requirements that are affiliated with Opportunity Zone Projects, including that property utilized in a project must generally be acquired after December 31, 2017 and furthermore the project often needs to be completed within 31 months from receiving funding from a Qualified Opportunity Zone Fund. 



 
Tune In to Our Opportunity Zone Podcast Series
 
Podcast Audio IconEpisode 1: Lessons Learned in Structuring and Executing Opportunity Zone Transactions
Jay Augustyn and special guest Steve Glickman, founder and CEO or Develop LLC, evaluate early returns on the Opportunity Zone Initiative, discuss the importance of data reporting and make predictions on what the program will look like in the near future. Listen Here.
Podcast Audio IconEpisode 2: Opportunity Zone Basics: An Overview
Matt Ehinger and Josh Schlake discuss opportunity zone basics and delve deeper into what Opportunity Zones are, how to invest in them and three major benefits investors can reap. Matt and Josh also discuss requirements for opportunity zone funds, the businesses in which they can invest and the timeline for making qualified investments. Listen Here.
Podcast Audio IconEpisode 3: Current Regulatory Framework for OZ Investment
Jay Augustyn and Matt Ehinger answer some of the most frequently-asked questions from clients. They explain the difference between passive and active investments and discuss how to make an exit from a single-asset fund compared to a multi-asset fund. Listen Here.
Podcast Audio IconEpisode 4: Fund Formation, Capital Raising and Documentation
Matt Ehinger and Tim Capen discuss federal and state security compliance, single purpose vs. multi-asset funds and how Qualified Opportunity Zone Funds differ from traditional fundsWhat should one consider before creating a Qualified Opportunity Zone Fund? Listen Here.
Podcast Audio IconEpisode 5: A Fund Manager’s Perspective to Opportunity Zone Ownership Structures and Investment
Matt Ehinger speaks with special guest Elliot Newman, managing director of Capital Gains Opportunity Fund. Elliot offers an overview of the different types of Opportunity Zone funds as well as a fund manager’s perspective on dealing with developers and attracting investors. Listen Here.
  Additional podcast episodes will be released on the first Tuesday of each month. Interested in hearing each new episode before it's posted to the website? Sign up below to receive an alert when new episodes are available.
 



For even more information, check out these upcoming speaking engagements and additional resources: 
 
Where You Can Find Us
 
  • "Developing the Disrupter's Mindset" - Butler Old National Bank Center for Closely Held Business Semi-Annual Conference
    • August 7, 2019
    • Butler University, Lacy School of Business
    • Speaker: Matt Ehinger - "Opportunity Zones: Transformative Disruption"
  • 2019 Opportunity Zone Expo
    • August 12, 2019
    • Radisson Blue Aqua, Chicago, IL
    • Speaker: Jay Augustyn
  • "How to Utilize Opportunity Zones as an Economic Development Tool" - Accelerate Indiana Municipalities (AIM) Ideas Summit
    • August 27, 2019
    • French Lick, IN
    • Speakers: Heather James, Matt Ehinger, Jay Augustyn
  • Information Management Network (IMN) Opportunity Zones Forum (Midwest)
    • September 19, 2019
    • Chicago, IL
    • Speakers: Matt Ehinger and Jay Augustyn
  • Illinois Tax Increment Association Fall Conference
    • September 18-19, 2019
    • Union League Club, Chicago, IL
    • Speaker: Jay Augustyn
  • Information Management Network (IMN) Real Estate Family Office Forum - Opportunity Zone Panel
    • October 16-17, 2019
    • Miami, FL
    • Speaker: Matt Ehinger
Additional Resources
 
 
 


Meet Our Team
   

Ice Miller's Opportunity Zone Team is comprised of tax, real estate, private equity/fund formation, private wealth and municipal finance professionals, each committed to providing his or her expertise to advance our clients' interests.
 
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