U.S. News


Treasury Dept. Proposes Rules To Grow Money, Jobs In Poor Communities

Treasury Secretary Steven Mnuchin announced guidance on tax-break areas called "opportunity zones."
Posted at 2:21 PM, Oct 21, 2018

The Treasury Department is proposing new rules to promote economic growth in underserved communities. Treasury Secretary Steven Mnuchin announced guidance on so-called "opportunity zones" on Friday. 

The zones will be in economically distressed areas. Investors that finance development in these zones will receive certain tax breaks. It's part of the GOP tax overhaul passed last year.  

The goal is to spur investment in areas that have struggled with it after the Great Recession. But critics say it will aid in gentrification by allowing investors to create tax havens in areas that were already considered attractive investments without the zones. 

The proposed regulations will go through a 60-day public comment period.