New ‘opportunity zone’ rules offer developers tax breaks


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The U.S. Treasury will release guidelines designed to spur projects in low-income areas.

The Trump administration on Friday will propose guidelines that will help investors use a new tax incentive that encourages development in low-income areas.

The Treasury Department designed the rules for the Opportunity Zone program to give businesses enough flexibility and certainty to start making major investments, said senior department officials who described the proposal in advance of its release.

The program, with bipartisan roots, was a small piece of last year’s tax law and has been attracting intense attention from real-estate developers and fund managers who have been soliciting investors and anxiously awaiting the rules.

Earlier this year, after getting recommendations from governors, Treasury designated nearly 9,000 census tracts as opportunity zones, spread across urban and rural areas and including almost all of Puerto Rico.

An expanded version of this story appears at WSJ.com.

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