The governor stated that his praise is rare but acknowledged that the program is working while more needs to be done to make it completely successful.
President Trump and California Gov. Gavin Newsom have been at odds long before the latter took office in Sacramento earlier this year - lambasting each other in speeches and on social media over issues ranging from immigration to high speed rail projects.
So it probably came as a shock to many when Newsom on Monday offered rare praise of a Trump administration policy that provides tax breaks to spur investment in low-income areas.
During a speech at Stanford University, Newsom said the Opportunity Zones program will not only help boost California’s already enormous economy, but would also help provide funds to deal with state’s housing crisis and would promote energy investment to help the state reach its climate change goals.
The Opportunity Zones program is part of the 2017 Tax Cuts and Jobs Act and looks to bring down the capital gains taxes for investors in real estate and business in low income neighborhoods. The program would permit investors to pay no capital gains taxes – which can run as high as 20 percent - after holding on to an investment for 10 years.