Trump administration seeks to boost Opportunity Zones

Combined Shape

WASHINGTON (AP) — The Trump administration on Wednesday proposed new regulations aimed at making it easier for investors to take advantage of tax breaks for investing in “Opportunity Zones” in low-income areas.

The proposed regulations issued by the Treasury Department seek to clear up questions that were keeping some investors from using the tax incentives.

President Donald Trump, speaking at a White House conference to promote the program, said governors in all 50 states and U.S. territories had designated 8,700 neighborhoods as Opportunity Zones, making these economically depressed areas eligible to be used for the federal tax incentives.

The program was included in the $1.5 trillion tax cut legislation that Trump pushed through Congress in 2017.

The new Opportunity Zones were set up to enable private investors to re-invest profits into designated areas. The investor can get a tax benefit by deferring their capital gains taxes invested in the zones until 2026. They also get a discount of up to 15% on the capital gains profits invested in the zones and pay no capital gains taxes on investments in the zones held for at least 10 years.

Trending:
In Just 4 Months, Biden Manages to Highlight How Competent Trump Was Over Previous 4 Years

However, the government found that use of these benefits was being limited because of concerns over how the tax rules would be interpreted. The proposed regulations unveiled Wednesday are designed to clear up the confusion.

Trump said the tax had been lowered “all the way down to a very big, fat, beautiful number of zero.”

Industry analysts said the new rules should help generate increased interest in the program.

Governors were allowed to choose up to a quarter of their states’ low-income census tracts as Opportunity Zones.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →






We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation