Opportunity zones are the tax shield tech wanted — but is it living up to expectations?
June 3, 2021 at 9:01 am
A rendering of Canton Lofts, an opportunity zone housing development in Seattle’s Pioneer Square neighborhood. (Nitze-Stagen Image)
It’s been more than three years since Republicans unveiled a plan to encourage high-net worth Americans to invest in economically distressed areas as part of the 2017 tax overhaul. Opportunity zones were billed as a tool to lift up communities left behind by the modern economy — and if the wealthy got a generous tax break in the process, all the better.
The program was the brainchild of several high-profile investors from the tech industry, where soaring stocks lead to big gains. By immediately investing those gains into a fund in a designated opportunity zone, investors can defer their capital gains tax and avoid paying taxes on the profits of the new investment altogether.