Census Won’t Expand Opportunity Zone Boundaries, IRS Says

May 14, 2021, 2:40 PM

The IRS rejected requests to allow changes to the boundaries of opportunity zones, closing the door on investors’ hopes of having expanded access to capital gains tax breaks.

The Friday announcement said the scope of the roughly 8,700 census tracts was set at the time of their designation. The guidance is a reversal of the Trump administration’s previously stated plans to expand zones, created in the 2017 tax law to drive investment to disadvantaged areas.

  • The IRS’s decision followed extensive lobbying to move tract lines as part of the Census Bureau’s decennial program to update tracts based on ...

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