To amend the Internal Revenue Code of 1986 to modify the rules for investments in qualified opportunity funds, and for other purposes.

Key Points

• The bill extends Opportunity Zone designations from 10 years to 20 years and pushes the investment deadline from December 31, 2026 to December 31, 2036. This gives investors another decade to put money into low-income neighborhoods and receive tax breaks.
• Investors who put money into Opportunity Zones can delay paying taxes on their gains until 2036 instead of 2026, giving them much more time to benefit from the program's tax advantages.
• To qualify for the biggest tax benefits on rental housing projects, at least 50% of occupied units must be lived in by people earning the area median income or less. This is meant to keep housing affordable rather than letting investors build luxury apartments.
• Rental projects in Opportunity Zones must keep at least 30% of units occupied by residents earning the area median income or below during substantially all of the fund's holding period to count as qualified zone property.
• Rent increases on residential units in qualifying projects are capped at 3% per year, and landlords must give tenants at least 60 days' notice before any rent hike — providing real protections for renters in these zones.
• The bill offers bigger tax breaks for investors in residential rental projects — increasing the basis step-up from 10% to 15% (for 5-year holdings) and from 5% to 7% (for additional holdings), rewarding investors who build affordable housing.

Votes

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Related Bills

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