IRS, Congress Struggle to Shed Light on Opportunity Zones’ Impact

IRS officials are trying to figure out what data the agency can collect on new incentives created under the 2017 tax overhaul, but the best hope for revealing whether the tax breaks are aiding low-income areas—rather than accelerating gentrification to the benefit of the wealthy—likely rests with Congress.

Investors are poised to plug billions of dollars into the 8,764 “opportunity zones” selected by states and approved by the Treasury Department under the 2017 law. By placing their unrealized gains from stocks or other investments into funds that invest in businesses within those zones, the investors can defer and, depending ...