Senate Finance Committee Chairman Ron Wyden is targeting Anthony Scaramucci’s hedge fund SkyBridge Capital, accounting firm Baker Tilly and others in an investigation into whether opportunity zone investments are benefitting low-income areas as intended.
Wyden sent
“I have long been concerned that the opportunity zone program may permit wealthy investors another opportunity to avoid billions of dollars in taxes without meaningfully benefitting the distressed communities the program was intended to help,” Wyden, an Oregon Democrat, said in the letter.
IRS data through 2019 showed that more than 6,000 funds reported holding about $29 billion in qualified property under the program.
Scaramucci, in response to a request for comment, said, “We are very proud to be a part of the program and are fully cooperating with Senator Wyden’s request. We built a beautiful hotel in New Orleans which I hope added a lot of construction jobs and permanent hotel jobs.”
Transparency call
Wyden said he is worried that the opportunity zones, which were created in the 2017 Republican tax law, aren’t helping struggling communities develop, but rather funding luxury real estate projects — including a yacht marina in Palm Beach, Florida, and a Ritz Carlton hotel in Portland, Oregon.
The Senate Finance chief is proposing to add transparency requirements for investors to demonstrate the benefit they are providing to the low-income communities to qualify for tax breaks.
A Government Accountability Office
Wyden requested that the recipients of the letter respond to his questions about their opportunity zone projects by Feb. 3.
— With assistance from Hema Parmar
