Capital Allocators – Inside the Institutional Investment Industry Manny Friedman – EJF on Economic Opportunity Zones (EP.91)
Mar 18, 2019
Manny Friedman, the founder of EJF Capital, shares his expertise on Economic Opportunity Zones, which aim to revitalize underinvested areas in the U.S. He discusses the substantial tax incentives that could unlock trillions in unrealized gains, highlighting both the potential for investment and the critical need for job creation over mere real estate profits. Manny also addresses the complexities and bipartisan support behind these zones, offering insights into emerging opportunities, particularly in rural South Carolina, and reflecting on the role of leadership in community growth.
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Goal of Opportunity Zones
- The Economic Opportunity Zone program aims to reduce economic disparity by redirecting capital to underserved areas.
- It's the largest initiative of its kind, attempting to shift trillions of dollars.
Investment Incentives
- The program incentivizes investment by deferring capital gains taxes for investments in designated zones.
- It also eliminates capital gains taxes on Opportunity Zone investments held for 10 years.
Zone Selection
- Opportunity Zones were chosen based on the 2010 census, focusing on underserved, low-income areas.
- Governors then selected specific zones within their states, covering 10% of the US and 12% of its population.