Opportunity Zone Investors May See Treasury Rules Shortly

Investment fund managers may get a look soon at the Treasury Department’s proposed rules for opportunity zones, a new capital gains tax break, now that the Office of Management and Budget has finished reviewing the regulations.

The OMB’s Office of Information and Regulatory Affairs sent the proposed rules back to Treasury Oct. 17, the OMB website shows—the final step before Treasury and the Internal Revenue Service release the proposed guidance.

Investors get a tax break on capital gains they put into opportunity funds, which are meant to drive economic development in low-income areas designated as qualified opportunity zones. Capital gains ...