New York’s Opportunity Zone Decoupling Spurs Cheers and Fears

New York’s plan to strip an opportunity zone tax break from its tax code through a new state budget proposal drew praise from progressives who hope it’s a trendsetting move, and jeers from those worried it will cause investors to flee.

In a budget deal unveiled late Tuesday, the state lawmakers would no longer allow investors to defer state and New York City capital gains taxes on the profits they put into “opportunity funds” that finance projects in the state’s opportunity zones. The move has significant implications for a state that houses a major global finance and real estate market ...