Who Gains from Place-Based Tax Incentives? Exploring Apartment Sales Prices in Qualified Opportunity Zones
研究2017年税收法案设立的合格机会区政策对公寓交易价格的影响，发现2017-2019年间部分公寓价格显著上涨，税收优惠部分转移给了卖方，提醒应税投资者不要仅依赖税收激励做投资决策。
Qualified opportunity zones, or o-zones, were established by the Tax Cuts and Jobs Act of 2017. This new place-based community development program encourages the investment of private capital into economically depressed areas through the use of tax incentives. With significant tax-induced demand, a small “investment box,” and a closing (now closed) window of opportunity for <i>full</i> tax benefits, conditions have been ripe for accelerating o-zone property prices. This study examines the policy’s effect on transaction prices for existing market-rate apartment properties located in census tracts that were designated as o-zones. It finds that certain segments of the apartment investment pool located in o-zones experienced significant price increases between 2017 and 2019. With material sales price increases, the benefits related to tax savings, at least in part, have effectively been transferred to the sellers of these properties. This finding acts as a cautionary reminder to taxable investors. While tax benefits are alluring, investment decisions should not rely on tax incentives alone. <b>Key Findings</b> ▪ Qualified opportunity zones, or o-zones, were established by the Tax Cuts and Jobs Act of 2017. This new place-based community development program encourages the investment of private capital into economically depressed areas through the use of tax incentives. ▪ With significant tax-induced demand, a small “investment box,” and a closing (now closed) window of opportunity for <i>full</i> tax benefits, conditions have been ripe for accelerating o-zone property prices. ▪ This study finds that segments of the apartment pool located in o-zones experienced significant price increases between 2017 and 2019, suggesting that the policy’s tax benefits, at least in part, have effectively been transferred to the sellers of these properties.