Will ‘Opportunity Zones’ Help the Rich, the Poor or Both?

Buried in the Republican tax overhaul that President Donald Trump signed into law in late 2017 are incentives for investors who fund businesses or develop real estate in new “opportunity zones.” Banks, private equity firms, insurance companies and wealthy individuals are rushing to take advantage. Critics have raised questions about whether the tax breaks will spur development in places that really need it or just stimulate growth in communities that were destined to see investment anyway. One of the more controversial sites is the New York City zone where Amazon had planned a new headquarters -- before it walked away in the face of criticism over the tax breaks and subsidies offered to the project.

It’s a U.S. census tract that meets the law’s criteria for high poverty or low incomes and has been nominated by its state for inclusion. More than 8,700 of all census tracts -- about a 10th -- have won designation as opportunity zones. They’re found in every state, in Washington, D.C. and in U.S. territories like Puerto Rico. Some of the rural zones span giant swaths of land out West, while some urban zones are just a few square blocks.