To amend the Internal Revenue Code of 1986 to renew and enhance opportunity zones, and for other purposes.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill renews and enhances the Opportunity Zones program, which provides tax incentives for investments in designated low-income communities. It proposes several changes, including broadening the definition of a ‘low-income community’ to exclude certain census tracts with high median family incomes and creating a new round of Opportunity Zone designations, prioritizing rural areas. The bill also modifies investment incentives, particularly for rural zones, and establishes reporting requirements for Opportunity Zone funds to track investments and their impact.
Key provisions
- Expands the definition of a ‘low-income community’ to exclude tracts with high median family incomes.
- Creates a new round of Opportunity Zone designations, prioritizing rural areas and designating up to 25% of low-income communities within a state, with at least the lesser of the total designations or all rural low-income communities.
- Extends the period for which Opportunity Zone designations remain in effect to 2033.
- Increases the basis increase for investments held for at least 5 years to 10% of the deferred gain.
- Provides a 30% basis increase for investments in qualified rural opportunity funds.
- Establishes reporting requirements for qualified opportunity funds and qualified rural opportunity funds, including data on investments, property types, and employment impacts.
- Allows for a limited treatment of ordinary income for investments made after 2026.
- Provides for a 50% adjusted basis increase for improvement of existing structures in rural areas.
Bill text
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Primary sponsor
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