The Treasury Inspector General for Tax Administration (TIGTA) will be examining the Opportunity Zone program, a part of the Tax Cuts and Jobs Act that was intended to spur investment in struggling areas, due to reports that funds are being used to build luxury projects in high-income neighborhoods, according to the New York Times. 

The Opportunity Zone program allows taxpayers to defer all or part of a capital gain that would otherwise be included in income if the corresponding amount is instead diverted into a Qualified Opportunity Fund, which then makes investments in Qualified Opportunity Zone businesses. The gain is deferred until an inclusion event or Dec. 31, 2026, whichever is earlier.

Since then, however, there have been concerns that the money is not being used for its ostensible purpose. For example, Pro Publica reported that the Rybovich superyacht marina in Florida, which offers luxury report amenities to the owners of yachts that can be hundreds of feet long and cost millions, qualifies as an Opportunity Zone. The owners are planning to use the funds to build luxury apartments on the site. 

TIGTA plans to look into matters such as how the administration determined which places qualified as Opportunity Zones. It expects its work to be done by around March.