“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

The Real Deal

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By Erin Hudson

August 12, 2019

New York State senator James Sanders Jr. is laying groundwork in New York to modify the federal Opportunity Zone program.

“This program will either be a boom or a bust to the community. You’ll either come in as pirates or partners. And my job is to see if we can’t create a partnership,” he said to an audience of real estate developers and investors gathered at the Marriott Hotel in Brooklyn Friday to attend the Opportunity Zone Expo, an event dedicated to the program.

The OZ program aims to boost investment in designated low-income areas across the country by allowing investors to defer taxes on capital gains they invest in a project inside a zone until 2026, and reduce that payment by up to 15 percent, so long as they hold the position for 10 years. Those same investors, who stay in the project for a decade, would also pay no taxes on profits from their investment.

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