The original Opportunity Zone legislation lacked a lot of details, and the first round of guidance in October 2018 created more questions than it answered. By and large, investors have been excited about Opportunity Zones but slow to engage without clearer IRS guidance. Original Use is well defined, but with one loopholeThe legislation was meant to spur investment and increase economic activity in the 8,000+ Opportunity Zones. Consequently, if an Opportunity Fund buys a building, it must substantially improve it, or, if the fund buys a piece of land, it can’t just sit on it. If an Opportunity Fund buys a building that has been vacant for an uninterrupted period of five years, it does not appear as if the fund must improve it.

Source: Forbes April 18, 2019 12:45 UTC