Lawmakers: Investment plan aims to help hard-hit communities

COLUMBUS, Ohio (AP) — Pushing idle investment capital into distressed communities is the goal of a proposal introduced in Congress last week.

Republican U.S. Rep. Pat Tiberi of Ohio is among the sponsors. He says the Investment Opportunity Act would encourage investment through a series of steps.

Governors could identify “Opportunity Zones” in certain designated low-income areas of their states that meet a specified threshold of economic distress under the legislation.

It also would allow investors to temporarily defer having to report capital gains on the sale of appreciated assets, as long as the gains are reinvested in a so-called Opportunity Zone. U.S investors currently hold an estimated $2.3 trillion in unrealized capital gains.

Investors could pool resources and risk in Opportunity Funds, or “O Funds,” under the plan.