Scott’s Investing in Opportunity Act Takes Step Forward
Washington – After years of pushing for a legislative initiative to help distressed communities, U.S. Senator Tim Scott (R-SC) is excited that the implementation of his Investing in Opportunity Act (IIOA) has begun. Yesterday, the Department of Treasury and Internal Revenue Service formally announced guidance to states, the District of Columbia, and all possessions of the United States on how to designate Opportunity Zones within their areas of jurisdiction.
“This is great news! Securing this provision in the tax bill was a huge legislative win for the millions of Americans living in struggling communities, and now local leaders can start to identify zip codes most in need of a renaissance,” said Scott. “The investment in neighborhoods will help to kick start local economies, grow jobs, and most importantly, will create a better quality of life for tens of thousands of our American families. I want to thank Secretary Mnuchin and his team for their hard work in establishing and pushing out the guidance that will help local leaders select their Opportunity Zones. This initiative will help to create permanent and positive change that will benefit generations to come.”
From now through March 21st, Governors and chief executive officers of states, D.C., and U.S. possessions will be able to designate Opportunity Zones that will benefit from this new provision. Full guidance can be found here.
Scott’s IIOA was included in the Tax Cuts and Jobs Act that was signed into law late last December. The premise of the provision is that it provides an opportunity for U.S. investors to use a capital gains deferral in exchange for investing the capital in economically disadvantaged communities. This private-public partnership will help create jobs, encourage small businesses, and influence local development.