Today, the U.S. Department of the Treasury issued the second set of proposed regulations related to Opportunity Zones, a bipartisan initiative included in the Tax Cuts and Jobs Act of 2017. The Economic Innovation Group’s President and CEO, John Lettieri, said, “The success of this initiative depends, first and foremost, upon a regulatory framework that facilitates investment into new and growing operating businesses in the designated areas, as well as improvements to the built environment of those communities . This set of proposed regulations removes many of the impediments that have kept capital on the sidelines instead of flowing into communities and supporting local growth. We look forward to continuing our work with the administration and stakeholders nationwide to ensure Opportunity Zones achieves its transformative potential.”
Opportunity Zones are the most ambitious federal attempt to encourage long-term private investment in low-income communities in decades. Under the law, businesses and individuals are eligible for tax benefits on capital gains reinvested into certain kinds of businesses and projects in the 8,700 low-income communities designated as Opportunity Zones across all 50 states, the District of Columbia, and the U.S. territories. In December 2018, EIG released “The State of Socioeconomic Need and Community Change in Opportunity Zones,” a comprehensive analysis of the prevailing social and economic conditions in Opportunity Zones, whose residents struggle with the consequences of disinvestment and decline. The initial set of proposed regulations were released by Treasury in October 2018 and EIG’s analysis of the initial regulations can be found here.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is an ideas laboratory and advocacy organization whose mission is to advance solutions that empower entrepreneurs and investors to forge a more dynamic American economy. Headquartered in Washington, D.C. and led by an experienced, bipartisan team, EIG convenes leading experts from the public and private sectors, develops original policy research, and works to advance creative legislative proposals that will bring new jobs, investment, and economic growth to communities across the nation. For more information, visit eig.org.