United States of America

United States of America

Regulations relating to tax incentives in Opportunity Zones adopted

19 Dec 2019

On 19 December 2019, the US Treasury Department together with the Internal Revenue Service adopted the final regulations relating to tax incentives in so-called "Opportunity Zones". They provide clarity in the existing tax framework. The tax inventive program is meant to allow taxpayers to defer tax on certain capital gains and reduce it up to 15%.

These Opportunity Zones have been created under the Tax Cuts and Jobs Act in designated economically distressed communities with an aim to attract investment through capital gains tax reliefs.