Bipartisan Investing in Opportunity Act Passes Out of Finance Committee
WASHINGTON, DC – In a major step toward helping distressed communities nationwide, the bipartisan Investing in Opportunity Act (IIOA) passed out of the Senate Finance Committee as a part of the tax reform bill that will be voted on by the full Senate in the coming weeks. The bill was introduced by U.S. Senator Tim Scott (R-S.C.) and co-sponsored by Senator Young (R-Ind.). The IIOA incentivizes investment in economically distressed areas by allowing trillions of dollars in private capital to be used to encourage small businesses, support entrepreneurs, and to develop dilapidated properties in zip codes most in need of a resurgence.
"Lack of opportunity is a common circumstance in distressed communities across the country," said Sen. Young (R-IN). "This proposal is a common-sense way to unleash investment and entrepreneurship in distressed communities to create hope and new opportunity. Ultimately, this is exactly the kind of behavior we should strive to promote and incentivize."
“Since I entered Congress, my goal was simple: create opportunity for everyday Americans wherever possible,” said Sen. Scott (R-SC). “It is a passion because I grew up in a single-parent household, surrounded in poverty, with very little expectation that I would find my way to success. But I learned that opportunity can truly be the difference that changes the course of one’s life. I know that when the IIOA is passed, when it actually reaches the people it’s intended to help, the results will be truly amazing because it will help everyday people in South Carolina and beyond build their way to a brighter future.”
There are currently 52 million Americans living in distressed communities across the country, and trillions of dollars in unrealized capital gains sitting on the sidelines. The IIOA would provide an opportunity for U.S. investors to use a temporary capital gains referral in exchange for investing the capital in these communities. This public-private partnership will create new channels for investment that will grow jobs, inspire entrepreneurship, and improve the local economy for future generations.
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