Las Vegas Sun

March 28, 2024

Program aims to drive investment in low-income areas

A new federal program that came from President Donald Trump’s tax cuts could help spur investment in development in Nevada, Lance Gilman, the broker/partner of the Tahoe-Reno Industrial Complex said Tuesday on Nevada Newsmakers.

“You are going to see a tremendous change with capital flowing into our (Nevada) markets,” Gilman said.

The program, created under recently passed federal legislation known as the Tax Cuts and Jobs Act, allows tax breaks for qualified investors who wish to reinvest unrealized capital gains in low-income areas known as opportunity zones.

“Its goal is to bring investments to areas that need redevelopment,” Gilman said. “Trump wants to repatriate all the capital that is coming offshore. They want to do the same thing here, and there is a lot of stranded capitol, so these opportunity zones, when you talk about Southern Nevada, you are going to see a tremendous change with capitol flowing into our markets.”

The law gives tax benefits to investors who place unrealized capital gains into opportunity funds, which then invest in opportunity zones.

Gilman sees major benefits in Northern Nevada.

“The opportunity zones are going to bring in a lot of capital from the sidelines,” he said. “It is an area in which you invest and it has a tremendous return on it.”