The Treasury Department is poised to outline new rules stemming from the $1.5 trillion tax overhaul last year that are aimed at giving investors confidence to pour billions of dollars into distressed economic areas across the U.S., the New York Times reported. Investment banks, venture capitalists and real estate developers have been eagerly awaiting guidance for so-called opportunity zones, a sort of domestic tax haven that was created under the Republican tax bill that President Trump signed into law in December. The zones are devised to attract capital to urban, suburban and rural areas where investment has lagged after the Great Recession — like broad sections of Detroit and Stockton, Calif. — by allowing investors to avoid some taxes when they fund projects there. Treasury is expected to outline criteria on Friday that would allow a wide variety of projects to qualify for the preferential tax treatment, including seed capital for start-up businesses in areas ultimately identified as opportunity zones.
