Posted May 20, 2019
Lawmakers want the Treasury Department to track the effectiveness of Opportunity Zones. Last week, a bipartisan set of senators including Tim Scott (R-SC), Todd Young (R-IN), Cory Booker (D-NJ) and Maggie Hassan (D-NH) introduced S.1344, which would put in place new oversight requirements for investments in the zones. A companion bill, H.R. 2593, was introduced in the House by Democratic Rep. Ron Kind of Wisconsin.
Investors may also be given more time to invest in the zones. An aide to Sen. Scott told Bloomberg that he and Sen. Booker are considering introducing legislation that “would move back by one year the start date of the tax breaks.” Investors are facing rapidly approaching deadlines – for some, as soon as June 29 – to buy into eligible projects in order to take full advantage of the tax benefits. Pushing back the start date would buy the Treasury additional time to finalize regulations governing these investments, and provide certainty to those deploying capital in the zones.
In other legislative news, the House Ways and Means Committee plans to hold a hearing Wednesday to discuss climate change. NAIOP supports legislation that takes a sensible approach to incentivizing energy efficiency without imposing new mandates.
Finally, it's infrastructure week in D.C. Congressional Democrats and President Donald Trump recently agreed to spend $2 trillion rebuilding American infrastructure, but have not yet provided details about how to fund that investment. NAIOP supports increased funding and investment in U.S. infrastructure and transportation systems.