TOP 25 ATTORNEYS
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MICHAEL SANDERS
BLANK ROME
Michael Sanders is the lead partner of the firm ’ s Washington , D . C ., office tax group . He focuses his practice in the area of taxation , offering knowledge in matters affecting partnerships , limited liability companies , S-corporations , real estate , tax controversy , Opportunity Zone funds , and estate planning . He also has a large practice in exempt organizations involving healthcare and low-income housing , associations and joint ventures between for-profits and nonprofits , as well as structuring New Markets Tax Credit , Historic Tax Credit transactions , and Opportunity Zone Funds . Sanders is an adjunct professor of tax in the graduate program at Georgetown Law Center and George Washington law school . He also advises funds , investors , and real estate companies on the OZ program requirements and provides up-to-date guidance .
WHAT NEW TRENDS ARE YOU SEEING IN THE OPPORTUNITY ZONE INDUSTRY ?
In view of anticipated legislation and the resulting impact of tax laws on OZ investments , including the anticipated increase in capital gain rates , we anticipate a significant growth of investments in OZ funds . The higher the rates , the more valuable OZs are . Since gain realization is coming in 2026 , tax planning needs to be considered to mitigate its impact , but the real benefit is exclusion after 10 years . Both Congress and practitioners are seeking to improve the program , especially in view of COVID-19 delays in the public improvement process . But at least $ 29 billion has been invested in OZs per GAO . Expect to see changes in census tract designations and taxpayer compliance . Shovel-ready properties are preferred .
MARC L . SCHULTZ
SNELL & WILMER
Marc Schultz ' s practice is concentrated in federal , local and state taxation matters . Schultz chairs Snell & Wilmer ’ s Tax Credit Finance Group and Renewable Energy Group , and founded and co-chairs the firm ’ s Opportunity Zones and Funds Industry Group . He is a regular speaker and panelist on the subject of tax credit finance and the Opportunity Zone incentive , has written numerous articles and been quoted in various publications with respect to these subject areas . Schultz is currently representing investors , fund sponsors , and developers with respect to the Opportunity Zone program . He was involved in the advising and drafting of a number of comment letters submitted to the U . S . Department of the Treasury and the IRS regarding the Opportunity Zone proposed regulations .
WHAT NEW TRENDS ARE YOU SEEING IN THE OPPORTUNITY ZONE INDUSTRY ?
A major trend that we have been seeing with the Opportunity Zone incentive is the entering of joint ventures among two or more Qualified Opportunity Funds for the development of real estate . These transactions involve the negotiation of a joint venture agreement and provide Qualified Opportunity Funds with the flexibility to invest in multiple projects and achieve diversification . Another major trend is for a project sponsor to negotiate with its investors the ability to elect to crystalize the sponsor ’ s promoted interest . This allows the sponsor to participate pari passu with its investors and obtain some liquidity prior to the end of the ten-year holding period .
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