New Focus on Rural Investments Draws Doubt Over Impact: BGOV Tax

Rural Incentives May Not Drive Investment

Investors and tax researchers doubt the GOP’s new incentives for rural opportunity zones will spur a rush of investment into small-town America, like lawmakers promise.

Rural areas have seen less than 10% of opportunity zone investment since the program launched in 2018. Hoping to change that balance, Republicans boosted short-term deductions for rural investors in the tax-and-spending law enacted last month.

But the most lucrative parts of the program remain available to both rural and urban investors. Nick Rosenthal, who oversees one of the largest pools of OZ money, said he advises clients to ...