Mnuchin's $100 Billion Market Gets Boost With Rules on Tax Break
- IRS proposal provides flexibility on opportunity zone projects
- More detailed regulations for funds expected later this year
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The Internal Revenue Service unveiled proposed regulations Friday for what Treasury Secretary Steven Mnuchin says could be a $100 billion investment opportunity for real estate and businesses in distressed areas.
The rules provide investors with guidelines about how they can qualify for special tax breaks in so-called Opportunity Zones -- economically disadvantaged areas where the U.S. government is trying to promote investment. The guidelines specify that only capital gains can qualify for the benefit and provide flexibility on the types of entities that can invest in Opportunity Zone funds, along with which projects qualify.