Hooper says the biggest clarification involves how operating businesses can comply with the rules.

PORTLAND, OR—Created by the Tax Cut and Jobs Act of 2017, opportunity zones seek to spark economic development in distressed areas by encouraging long-term investments through tax breaks. The tax incentive allows investors to defer or minimize taxes on capital gains and, when the investment is remains in play for more than a decade, eliminate capital gains taxes all together.

The Treasury Department recently released a second round of rules clarifying requirements for opportunity zones in a move designed to encourage more development in low-income areas, according to Housing Wire. The new rules are intended to make it easier for developers looking to take advantage of the tax breaks promised by investing in opportunity zones, and clear up some of the confusion that was holding investors back.

More than 8,700 communities housing approximately 35 million Americans have been designated as opportunity zones. While HUD estimates that opportunity zones could spur as much as $100 billion a year in investments, evidence suggests this potential is far from being realized.