You'll have to evaluate this deal-by-deal. If the act passes, examine whether your paperwork references any old deadlines, or perhaps you'll need to update statutory citations.
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What happens with my existing Opportunity Zone investments if the Transparency, Extension and Improvement Act passes to extend the incentive through 2028?
Do we need to update contracts and agreements? Should QOFs start preparing documents in case there is an extension?
Answers
It is unlikely that your existing OZ investments would be affected if the OZ incentive is extended through 2028 under the Transparency, Extension and Improvement Act. There could be exceptions to this general rule if your QOF agreement provides for (i) special distributions in 2026 (to pay the resulting tax liability on the triggering of deferred gains), (ii) a capital call provision that terminates in 2026 or (iii) other similar provisions that are hard-wired to 2026 with the expectation that the OZ incentive will end at that time.
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