Lobbying Pressure Shows in Changes to Opportunity Zone Rules

Treasury, following an assessment by the White House’s regulatory review office, tweaked proposed opportunity zones regulations to make it easier for investors to take advantage of the tax breaks.

Several of the changes made to the rules (REG-115420-18) prior to their publication in October were substantive and stemmed from recommendations business groups and lobbyists provided in meetings with the Treasury Department and the Office of Management and Budget’s Office of Information and Regulatory Affairs.

The opportunity zone program is meant to encourage private investment in distressed communities. Investors who funnel capital gains they have earned—as a result of ...