Some NFL teams potentially eligible for big tax break under new law
Some National Football League (NFL) teams might be able to take advantage of a new tax break aimed at boosting investment in specific low-income areas.
The Tax Cuts and Jobs Act – signed into law in December 2017 – established what the government calls “opportunity zones.” These zones are defined by the Internal Revenue Service as economically-distressed communities where new investments and job creation can be eligible for preferential tax treatment, under certain conditions. In order to qualify for the designation, localities had to be nominated by their state and certified by the U.S. Treasury Secretary.
Opportunity zones have been designated in parts of all 50 states.
There are about 15 NFL franchises with stadiums located in opportunity zones, as first reported by The Opportunity Zones Database, as well as three additional stadiums located adjacent to a certified zone. These teams could potentially be eligible for capital gains tax breaks on stadium-related investments, if they appropriately structure those investments.
The IRS has yet to issue guidance on stadiums and teams' ability to utilize the tax break. A spokesperson for the agency did not return FOX Business' request for comment on the issue.
Here are some of the stadiums that could be eligible for the write-off, as noted by OpportunityDb:
Las Vegas Raiders stadium
Construction is underway to build the Raiders a new stadium when the franchise moves to Las Vegas. The project will cost an estimated $1.8 billion and is located in an opportunity zone, potentially making some things eligible for the tax benefit. It is expected to open in time for the 2020 NFL season.
M&T Bank Stadium, home of the Baltimore Ravens
M&T Bank Stadium is currently undergoing a three-year renovation to construct new escalators and elevators, scheduled to be completed at the start of the 2019 season. The project is valued at about $120 million. Other renovations include upgrading the stadium’s sound system and concessions.
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Broncos Stadium at Mile High, home of the Denver Broncos
Broncos Stadium at Mile High is located in an opportunity zone – and the Denver Broncos have plans to build an entertainment district, which is said to include residential, commercial, real estate and hotel space. Those upgrades could be eligible for the tax break.
Many other stadiums located in qualified zones, like Nissan Stadium – home of the Tennessee Titans – have not announced renovation plans yet.