By Laura DavisonBloomberg
The Trump administration Wednesday released rules for a tax break designed to encourage economic development in distressed areas throughout the U.S. by making it easier to invest in businesses and real estate in low-income communities.
Wall Street banks, private equity firms, real estate developers and others have been eagerly awaiting the regulations, which the administration said will spur $100 billion of investment into the more than 8,700 areas designated as “opportunity zones” in the 2017 federal tax overhaul.
The 169-page proposal gives investors interested in these areas additional leeway and a more flexible timeline, a Treasury official told reporters Wednesday. The rules also give investing funds a one-year grace period to sell assets and reinvest the proceeds, thus avoiding penalties intended to prevent funds from sitting on the cash.RELATED: Alabama, Birmingham preparing for economic impact ofOpportunity Zones
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