Making OZ Investment More Transparent

The IMPACT Act will expand reporting requirements for opportunity zones

Nest Opportunity Fund is fully in support of the IMPACT Act, a recently introduced bill in Congress that creates disclosure requirements for qualified opportunity zone funds to measure their impact on the qualified opportunity zone census tracts they invest in. Nest Opportunity Fund’s mission to “Do well by doing good” exemplifies the purpose of this bill: to create incentives to invest in communities that need a jump-start.

Sen. Todd Young, a Republican from Indiana, and other high-ranking Senators have introduced these opportunity zone regulations through the IMPACT Act, which he says would “reinstate and expand reporting requirements to determine the impact of the more than 8,700 Opportunity Zones across the country.”

What’s in the Bill?

Here’s an excerpt from Young’s news release on the bill:

The IMPACT, or Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones Act includes a variety of reporting requirements … to provide for the most robust and granular analysis over time on the targeted impacts of investments in Opportunity Zones. With more than $63 billion already in anticipated investments, it is critical that this analysis is in place. The IMPACT Act’s requirements do this while protecting taxpayer privacy laws and preserving the ability of communities to utilize a wide variety of possible investments without overburdening entrepreneurs and local governments with mountains of unnecessary paperwork.

“When we passed tax reform, I was proud to support the creation of Opportunity Zones to incentivize new investment in distressed communities across the country,” said Senator Young. “The IMPACT Act will help strengthen Opportunity Zones by increasing transparency within the program and creating metrics to measure and improve on its success.” 

The Benefits of Careful Investment

The beauty of opportunity zone investing is also the reason why we urge investors to carefully assess where and how to invest. Investors can reduce pending capital gains taxes significantly with the potential of any gains on the funds invested in the OZ Fund being tax-free. However, not all OZ Funds are created equally. The time horizon is 10 years to fully capture all advantages of this investment opportunity, so this is for investors who are comfortable with a long-term investment with partners who know what they’re doing.

Our Nest Opportunity Fund is focused on the area of real estate we consider the least volatile: single-family and smaller multi-family housing. We are focused on upward-moving neighborhoods with great potential in economically stable Midwestern cities, including Columbus, OH and Lexington, KY.

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