Foreign Investors May See Chances For Opportunity Zone Tax Breaks

Opportunity zone tax breaks aren’t drawing in non-U.S. investors thus far, but the IRS is working on regulatory changes that some think could increase interest among foreign investors.

The incentives, established in the 2017 tax law, allow investors to defer and reduce their capital gains taxes by plugging profits from stocks, bonds, real estate, and other assets into funds that finance projects in designated zones. But, since foreign individuals are generally only subject to U.S. tax on a narrow set of capital gains, their chances for taking advantage of the opportunity zone incentives are few and far between.

“We’ve kicked ...