Opportunity Zones Aren’t Perfect, But New Reforms Should Help

Abstract

The OZ program allows investors to invest capital gains in Qualified Opportunity Funds within 180 days and then defer the tax on those gains until December 31, 2026. The program was passed in 2017 as part of the Trump administration’s larger tax reform package. Critics complain its impact on helping disadvantaged communities has been uneven and could even have damaging effects. In 2020, the White House estimated that between $75 billion to $100 billion. More than 8,700 areas in the U.S. has been invested in OZs. have been designated by states and certified as Opportunity Zones. The White House also said the zones have created half a million jobs. The bill would be a new Opportunity Zes. The new legislation would be the first major update to the program to be on the horizon. The legislation would allow states to replace and designate new OpportunityZones, certain census tracts.