WASHINGTON, D.C. – Permanently extending the Trump tax cuts would be a lifeline for some of America’s poorest and most rural communities that would see billions in new investment for new businesses and jobs under the Opportunity Zone (OZ) program. 

Opportunity Zones from the 2017 Trump Tax Cuts have a proven record of revitalizing economically distressed communities. In the first two years of the program, $48 billion in new investment helped create 780,000 new jobs in OZs. These zones are marked by serious poverty with the average OZ having a 29 percent poverty rate and 10 percent unemployment. The incentives worked so well that Opportunity Zones were 21 percent more likely to be the location for new commercial or residential projects compared to the national average. Based on the benefits of the OZ program, permanently extending this tax policy would lead to a continuation of this success story, delivering economic growth and job creation that lifts more Americans out of poverty. 

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement urging quick extension of the Trump tax cuts to help America’s poorest communities:

“Last year, the Ways and Means Committee held a hearing on the effectiveness of Opportunity Zones in Erie, Pennsylvania. We heard stories from folks in the community about how Opportunity Zones revitalized downtown Erie and neighborhoods with new businesses, new homes, and new jobs after decades of decline and neglect. Without a doubt, the Trump tax cuts put the needs of working-class families and forgotten men and women first. We also heard about how the OZ program could be improved. Small towns and rural America are great places to build new businesses but have too-often been overlooked by Washington. Taxpayers also deserve to know how these incentives are being used and who is benefitting. If we permanently extend the Trump tax cuts, we will breathe new life and prosperity into all kinds of communities – including rural America.”  

Working families struggled under President Biden to achieve the American Dream and own a home. During the Biden-Harris Administration, the monthly mortgage payment for a median priced new home increased by nearly $1,000. Opportunity Zones have helped ease the Biden housing crunch with the construction of at least 300,000 new homes since the incentive’s inception. 

Hearing From America
In May, the Ways and Means Committee held a field hearing in Erie, Pennsylvania on the benefits of Opportunity Zones and other policies in the Trump tax cuts that spurred investment in a city that was once home to America’s poorest zip code. Local business owners and community leaders, including a local pizzeria owner, credited OZs with helping them start their businesses.

Rep. Mike Kelly (PA-16): “Jason, I want to ask you: without the Opportunity Zones, what would the future of Ippa Pizza be?…If it hadn’t been for Opportunity Zones, would you have been able to do this?”

Jason Spore, pizzeria owner: “I’m a pretty resilient guy. I fight hard. Sometimes I don’t know when to give up, so I would hate to say no. What I will tell you is that the speed of what I’ve been able to do and how fast I’ve grown, the EDDC [Erie Downtown Development Corporation], the help that they’ve given and created for me has been paramount. No way I could do it the way that I’m doing it now.”

READ: In Pennsylvania, Trump Tax Cuts Revitalize Struggling Communities

Opportunity Zones Spur Prosperity in the Poorest Neighborhoods

• From 2018 to 2020, Opportunity Zone investment totaled at least $48 billion and created at least 780,000 new jobs.
• Treasury estimates that urban Opportunity Zones accounted for 96 percent of qualified property investment in 2019 and 95 percent in 2020. 
• In June 2023, the Ways and Means Committee approved the Small Business Jobs Act that would have, in part, established a new Rural Opportunity Zone program to help rural communities benefit from the same recovery and development OZs have delivered to urban areas.
• Permanently extending the Trump tax cuts could generate upwards of $50 billion in new investment in Opportunity Zones.

Extending the Trump Tax Cuts
Permanent extension of the 2017 Trump tax cuts will fuel significant economic growth and prosperity. 

• 1 million new jobs created annually by small businesses if the 20 percent small business deduction is made permanent. 
• $150 billion in economic growth from permanent extension of the 20 percent small business deduction. 
• $284 billion in new economic growth from American manufacturers. 
• $50 billion in new investment in Opportunity Zones, which represent the poorest neighborhoods and communities in the country.