Bradley attorney Brian Robbins was quoted in Law360 on the Alabama Department of Economic and Community Affairs’ request for stakeholders and state and local officials to weigh in on how state project agreements in opportunity zones should be developed under H.B. 560. The law currently leaves many things open to interpretation, including how the individual credit amounts should be determined and the scope of audits to the funds. The department is seeking help to refine definitions and parameters for tax incentives for opportunity zone investors.
One of the key issues that investors are currently seeking clarity on is what the ballpark figure of the expected return on investment in the agreements will be, Robbins said
The impact investment credits are intended to mitigate the risk for potential developers who might otherwise sit on the sidelines if they are unsure they can meet an agreement’s expected return, Robbins explained. The state has yet to provide any specifics for the tax credits beyond the statute’s language, and Robbins said investors are hopeful that the department’s request for comments will help fill in the blanks.
“The credits really are designed for downside protection, so that if your investment doesn’t perform, you can at least have some compensation,” Robbins said. “Investors we’ve talked to really want to know what the safe harbor will be, and what the broad lines of the process will be.”
The complete article, “Ala. Gov. Urges Public Input on Opportunity Zone Tax Credits,” first appeared in Law360 on July 3, 2019.