To take advantage of an opportunity zone, investors must make business or development investments through a qualified investment fund
, said April Hamlin, a securities lawyer with Ballard Spahr in Minneapolis who has worked with opportunity zone funds.
Meanwhile, the CRA Qualified Investment Fund
, the nation's largest mutual fund of community development investments, has earmarked $100 million in assets--almost 15 percent of its total holdings--for investments that finance redevelopment of the Gulf Coast region affected by the hurricanes.
S 39, Laws 2002, allows a qualified investment fund
service corporation to elect to apportion business income from administration, distribution and management services provided to each investment company by a special single-factor apportionment formula, based on ownership of shares in the investment company.
This new category of funds (Limited Qualified Investment Funds
or L-QIF) would be reserved for qualified investors such as pension funds and insurers.