Here’s How That Opportunity Zone Thing is Working Out
A year and a half after President Trump signed it into law, CNN has taken an in-depth look at one of the more interesting provisions of the Tax Cuts and Jobs Act — that is, the creation of so-called Opportunity Zones. These distressed, low-income areas (8,764 in total) offer developers an important incentive to invest and build by allowing them to defer capital gains taxes.
CNN visited tracts in Koreatown, Hollywood, downtown L.A., and the Arts District where most of the projects are taking place. Poorer areas such as Compton have yet to see increased investment, CNN found.
We don’t have any official numbers on the Opportunity Zone experiment from the government. CNN’s investigation seems to suggest the program is helpful, but not a game changer.
“It's not going to make something feasible if it was infeasible to begin with," Paul Silvern, partner with L.A.-based real estate consulting firm HR&A Advisors, told the network, adding "this is just icing on the cake."
Read the full evaluation here.