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| New Regulations, RFI Released as NAFCU Attends Event on Opportunity Zones |
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NAFCU Senior Counsel for Research and Policy Andrew Morris attended a conference held at the White House yesterday where President Donald Trump was joined by Treasury Secretary Steven Mnuchin and Department of Housing and Urban Development (HUD) Secretary Ben Carson to discuss and give an update on Opportunity Zones.
Opportunity Zones, an effort by the Trump administration to revitalize economically-distressed communities across the nation, was created by the Tax Cuts and Jobs Act. There were questions regarding rules when the Treasury Department released the first batch of regulations on the program in the fall, but new proposed regulations released Wednesday afternoon attempt to clarify how the tax incentive program will work.
"We are pleased to issue guidance that provides greater flexibility for communities and investors as we continue to encourage investment and development in Opportunity Zones," Mnuchin said in a statement following the release of the new regulations.
Under the proposed regulations, the Opportunity Zones program could open up new financing opportunities for credit unions wanting to facilitate private investment; NAFCU will continue to monitor any developments regarding opportunities for credit unions.
Ahead of Wednesday's event – attended by a number of administration officials and state, local, tribal and community leaders – HUD issued a Request for Information (RFI) on its Opportunity Zones policies to "[inform] the public that HUD intends to maximize the beneficial impact of investment in Opportunity Zones." The RFI includes a request for comments, due June 17.
The Opportunity Zones program allows investors to reduce capital gains bills by investing money into areas that have been deemed economically underdeveloped. Through the initiative, the administration hopes to encourage investment and drive economic growth and job creation in distressed communities.
In December, NAFCU participated in a White House call on this issue, after which Trump signed an executive order to establish the White House Revitalization Council, which will be comprised of 13 federal agencies, including HUD, the Justice Department, Energy Department, Small Business Administration, and others. The council is expected to present the President with recommendations to encourage investment and revitalization in these communities.
Copyright 2019. NAFCU. (link) |
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