The Treasury publishes guidelines on the "Opportunity Zone" program created by the Trump Tax Law

The Treasury Department released on Friday the draft rules for the "Areas of Opportunity" program created by President TrumpDonald John TrumpThe Guardian blames Trump for commenting on the assault of a journalist. Five points to remember from the first debate in the Senate of North Dakota. Watchdog org: Tillerson has used millions of dollars of taxpayer funds to move to the United States.The tax law, designed to help stimulate new investments in communities in distress.

The guidelines are designed to provide investors with the information they need to enter into commercial agreements in areas of opportunity, the Treasury said. Investors and state and local governments who were considering using the program were eager to receive advice on the program.

Under the new tax law, investors can enjoy tax benefits on capital gains if they invest in troubled areas designated by the Treasury as opportunity zones. The Treasury has already approved areas that governors have asked to designate as areas of opportunity. More than 8,000 communities, home to nearly 35 million Americans, are in designated areas.

Tax law allows the deferral of tax until 2026 on capital gains from other investments reinvested in funds that invest in areas of opportunity. It also exempts from capital gains tax on investments in areas of opportunity kept for 10 years.

The opportunity zone program was a top priority for Sen. Tim ScottTimothy (Tim) Eugene Scott – Night Health Care – Presented by the Coalition for Affordable Prescription Drugs – Senators Will Face a Vote Wednesday on Trump's Health Plan Rule | Trump officials plan shutdowns for ObamaCare website | Lawmakers push for action to reduce maternal deaths A group of bipartite senators are asking Trump to focus more on maternal deaths. 7 law enforcement officers shot dead in South Carolina (R-S.C.) During the process of transferring the tax bill to Congress.

treasury secretary Steven MnuchinSteven Terner Mnuchin – Night Defense: Trump changes tone on Saudis | New pressure from lawmakers | Trump: "Certainly" looks like Khashoggi's death | Pompeo gives the Saudis time to conclude the investigation | Trump threatens military action at the border to stop migrants On The Money: Mnuchin withdraws from Saudi summit | Consumer Bureau to probe controversial blog articles on race | Harris is proposing a new tax credit for the middle class. Trump changes tone on Saudi Arabia in the face of growing pressure was also excited about the program. A tan event organized by The Hill last monthhe predicted that more than $ 100 billion of private capital would be invested in the zones.

"This incentive will promote the revitalization of the economy and promote sustainable economic growth, which was one of the major goals of the Employment Tax Reduction Act and the Canada Pension Plan. job creation, "Mnuchin said in a press release Friday.

The instructions provide information on earnings eligible for tax deferral, who can invest in funds in the area of ​​opportunity and the parameters of investments made by the funds.

A senior Treasury official said the rules provide flexibility on what taxpayers can invest in funds and include a favorable definition of what it means for a company to invest "substantially all" of its assets in properties located in areas of opportunity.

The official said the ministry plans to release an additional set of proposed rules on the areas of opportunity by the end of the year, focused on the continued operations of the fund 's zones. 39; opportunity. The official expects the proposed rules to be finalized early next year.

Prior to this year, tax rules were generally exempted from the Office of Management and Budget Review. However, the Treasury and the OMB issued a memo in April urging the Commission to review certain tax rules. According to the memo, the rules relating to the new tax law must be revised within 10 working days, subject to extensions.

The OMB received instructions from the Treasury on September 12 on the opportunity areas, but did not complete its review until October 17th.

The New York Times reported that the Treasury and the OMB have opposed the strictness of the rules on opportunity zones, with some seeking rules that others would find too restrictive.

The senior treasury official said the Treasury and the OMB wanted to be cautious about the rules, as the opportunity zone program could have a significant economic impact. The grievor stated that the review process worked well and was "collegial and collaborative".