The IRS has announced (IRS Announcement 2021-10
) that the designated boundaries for Opportunity Zones will remain unchanged despite potential changes to the underlying census tracts.
Qualified Opportunity Zone tax incentives were created by the Tax Cuts and Jobs Act to offer benefits for investing in specific geographic areas. States selected census tracts to be designated as Opportunity Zones under guidelines set by the TCJA. Many of underlying census tracts are now changing with the 2020 census results, but the IRS rejected calls to expand the zones with potential expansions in the tracts. The IRS maintains that the statutory language does not permit changes in the boundaries after 2018.
Washington National Tax Office
+1 202 861 4144
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.