One element of the Tax Cuts and Jobs Act
President Trump signed an executive order yesterday to push federal resources to ‘opportunity zones’, according to NYTimes. It seeks to reassure investors that these zones are viable places for investment.
Dig Deeper: The order will create a White House Opportunity and Revitalization Council, which will work to prioritize these areas when it comes to grant funding, loan guarantees, infrastructure spending, and crime prevention.
Quick Review: The provision in the tax bill offers tax incentives for investments in 9,000 designated low-income communities throughout the United States. It allows investors to defer paying capital gains taxes until 2026 if they roll their investment gains into such funds. If they hold their new assets for at least a decade, investors avoid paying taxes on any further appreciation.