This Week in ESG and Impact Investing

The Tax Cuts and Jobs Act, passed in 2017, created new tax incentives for investments in what are known as Opportunity Zones: targeted areas in the United States. Investments are made via Qualified Opportunity Funds, who are directed to promote economic development in 8,700 disadvantaged rural and urban (read Native, African American and Hispanic) communities (low-income census tracts selected by state governors and certified by the U.S. Treasury Department) by offering investors substantial federal tax advantages.

As one analyst explained:

"Assume an investor has a $1 million gain in Apple stocks and decides to sell. To keep it simple, let’s also assume the investor is in a 20 percent tax bracket, totaling $200,000 in capital gains tax. But instead of paying, the investor reinvests the $1 million in an Opportunity Fund.

If the investor holds for more than 10 years: the investor pays ZERO capital gains tax on the appreciation of that asset."

These benefits are only availabl…

"U.S. clean energy developer shares dropped this week, as the Senate tax bill threatens to erode the $12 billion tax-equity financing market for wind and solar. Renewable-energy developers sell the credits to banks and insurance companies, which then apply the credits to their own tax bills."



See: https://www.bloomberg.com/news/articles/2017-12-04/tax-reform-could-stifle-jpmorgan-s-support-for-renewable-energy

Webinar: $60
Wednesday, December 13, 2017 from 2:00 PM to 3:00 PM (EST)
RSVP: https://newtaxlaw.eventbrite.com

This seminar will review the impact of the recently passed tax bill.
According to news reports, "The Congressional Budget Office..analysis of the Senate's tax bill..estimates, anyone making less than $30,000 a year would feel the pinch starting in 2019, with the greatest 'savings' to the government (not to you - a combination of either increases in payments or decreases in money spent on a group in services) coming from those who make less than $10,000 a year.

By 2020, everyone making $40,000 or less a year would also be contributing to lowering the deficit by paying more in taxes and/or receiving less in services, creating a net savings for the federal government. In that year, the groups making between $10,000 and $20,000 and between $20,000 and $30,000 would each be contributing double what the under-$10,000 group did in savings.
By 2027, everyone making …

Tax​ ​reform​ ​will​ ​continue​ ​to​ ​be​ ​a​ ​major​ ​issue​ ​over​ ​the​ ​next​ ​several​ ​months. Both​ ​Congress​ ​and
President​ ​Trump​ ​have​ ​expressed​ ​a​ ​strong​ ​interest​ ​in​ ​reform.​ ​

A ​panel​ at George Washington University titled ​“A​ ​General​ ​Perspective on​ ​Taming​ ​the​ ​Tax​ ​Code:​ ​What​ ​Yesterday’s​ ​Reformers​ ​Can​ ​Teach​ ​Today’s​ ​Reformers”​ ​provided great​ ​insight​ ​into​ ​the​ ​methods​ ​and​ ​issues​ ​of​ ​reform​ ​from​ ​the​ ​perspective​ ​of​ ​the​ ​House​ ​Ways​ ​and Means​ ​Committee.

​Bill​ ​Archer(R-TX)​ ​and Charlie​ ​Rangel(D-NY)​ ​are​ ​both​ ​former​ ​committee​ ​chairmen​ ​and ​were​ ​members​ ​of​ ​​Ways and Means in 1986 when​ ​the​ ​tax​ ​code​ ​was​ ​last​ ​reformed​.​

​Rangel​ ​emphasized​ ​the​ ​importance​ ​of​ ​the​ ​president in​ ​getting​ ​tax​ ​reform,​ ​specifically noting ​that the​ ​President’s​ ​ability​ ​to​ ​inspire​ ​confidence​ ​among​ ​the​ ​public​ ​and​ ​the Congress​ ​can​ ​be​ ​decisive​ ​in​ ​the​ ​fate​…