,,ii  #aad? ,,congress  #b;d ,session   
,s4 #bhfh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #bg1 #bjaf ,mr4 
,scott 7= himself1 ,mr4 ,book]1 ,mr4    
,g>dn]1 ,mr4 ,pet]s1 ,mr4 ,blunt1 & ,mr4
 ,b5net7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide = !    
def]ral ( inclusion 9 gross income =    
capital ga9s re9ve/$ 9 economically     
di/ress$ zones4  #a4 ,%ort title  ,?is  
,act may be cit$ z ! ,inve/+ 9          
,opportunity ,act4  #b4 ,opportunity    
zones  7a7 ,9 g5]al ,*apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+3  ,z          
,opportunity zones  ,sec4 #adjj,z-#a4   
,designation4 ,sec4 #adjj,z-#b4         
,tempor>y capital ga9s def]ral4         
#adjj,z-#a4 ,designation  7a7 ,qualifi$ 
opportunity zone def9$ ,= ! purposes (  
?is sub*apt]1 ! t]m qualifi$ opportunity
 zone means a population c5sus tract t  
is a l[-income community t is designat$ 

z a qualifi$ opportunity zone4  7b7     
,designation  7#a7 ,gov]nor  7,a7 ,9    
g5]al ,= purposes ( subsection 7a71 a   
population c5sus tract t is a l[-income 
community is designat$ z a qualifi$     
opportunity zone if--  7i7 n lat] ?an ! 
end ( ! det]m9ation p]iod1 ! gov]nor ( !
 ,/ate 9 :i* ! tract is locat$--  7,i7  
nom9ates ! tract = designation z a      
qualifi$ opportunity zone1 &  7,,ii7    
notifies ! ,secret>y 9 writ+ ( su*      
nom9ation1 &  7ii7 ! ,secret>y c]tifies 
su* nom9ation & designates su* tract z a
 qualifi$ opportunity zone be=e ! end ( 
! consid]ation p]iod4  7,b7 ,ext5sion ( 
p]iods ,a gov]nor may reque/ t !        
,secret>y ext5d ei!r ! det]m9ation or   
consid]ation p]iod1 or bo? 7det]m9$ )\t 
reg>d to ?is subp>agraph71 = an         
additional #cj days4  7,c7 ,deem$       
designation if ,secret>y fails to act   
,unless ! tracts are ineligible =       
designation1 if ! ,secret>y decl9es 9   
writ+ to make su* c]tification &        
designation or fails to act be=e ! end (

 ! consid]ation p]iod1 su* nom9ation    
%all be deem$ to be c]tifi$ & designat$1
 effective on ! day aft] ! la/ day ( !  
consid]ation p]iod4  7#b7 ,secret>y ,if 
a gov]nor fails to make ! nom9ations &  
notifications by ! end ( ! p]iods ref]r$
 to 9 p>agraphs 7#a77;,a7 & 7#a77;,b71 !
 ,secret>y %all designate & c]tify      
population c5sus tracts t are l[-income 
communities z qualifi$ opportunity      
zones1 z p]mitt$ by subsection 7e74  7c7
 ,o!r def9itions ,= purposes ( ?is      
subsection-- 7#a7 ,l[-income communities
 ,! t]m l[-income community has ! same  
mean+ z :5 us$ 9 section #de;,d7e74     
7#b7 ,def9ition ( p]iods  7,a7          
,consid]ation p]iod ,! t]m consid]ation 
p]iod means ! #cj-;day p]iod beg9n+ on !
 date on :i* ! ,secret>y receives notice
 "u subsection 7b77#a77;,a77i77,,ii71 z 
ext5d$ "u subsection 7b77#a77;,b74  7,b7
 ,det]m9ation p]iod ,! t]m det]m9ation  
p]iod means ! #ij-;day p]iod beg9n+ on !
 date ( ! enactm5t ( ! ,inve/+ 9        
,opportunity ,act1 z ext5d$ "u          

subsection 7b77#a77;,b74  7d7 ,guidance 
= opportunity zone nom9ations ,:5       
consid]+ ! nom9ation ( qualifi$         
opportunity zones1 gov]nors %\ld /rive =
 ! creation ( qualifi$ opportunity zones
 t are geographically conc5trat$ &      
contigu\s clu/]s ( population c5sus     
tracts & %\ld give p>ticul> consid]ation
 to areas t--  7#a7 are curr5tly ! focus
 ( mutually re9=c+ ,/ate1 local1 or     
private economic developm5t initiatives 
to attract inve/m5t & fo/] />tup        
activity1  7#b7 h demon/rat$ success 9  
geographically t>get$ developm5t        
programs1 su* z promise zones1 new m>ket
 tax cr$it1 emp[]m5t zones1 & r5ewal    
communities1 &  7#c7 h rec5tly exp]i5c$ 
significant lay(fs due to bus9ess       
closures or relocations4  7e7 ,numb] (  
designations  7#a7 ,9 g5]al ,except z   
provid$ by p>agraph 7#b71 ! numb] (     
population c5sus tracts 9 a ,/ate t may 
be designat$ z qualifi$ opportunity     
zones "u ?is section may n exce$ #be    
p]c5t ( ! numb] ( l[-income communities 

9 ! ,/ate4  7#b7 ,exception ,if ! numb] 
( l[-income communities 9 a ,/ate is    
less ?an #ajj1 !n a total ( #be ( su*   
tracts may be designat$ z qualifi$      
opportunity zones4  7f7 ,designation (  
tracts contigu\s ) l[-,income           
communities  7#a7 ,9 g5]al ,a population
 c5sus tract t is n a l[-income         
community may be designat$ z a qualifi$ 
opportunity zone "u ?is section if--    
7,a7 ! tract is contigu\s ) ! l[-income 
community t is designat$ z a qualifi$   
opportunity zone1 &  7,b7 ! m$ian family
 income ( ! tract does n exce$ #abe     
p]c5t ( ! m$ian family income ( !       
l[-income community ) :i* ! tract is    
contigu\s4  7#b7 ,limitation ,n m ?an #e
 p]c5t ( ! population c5sus tracts      
designat$ 9 a ,/ate z a qualifi$        
opportunity zone may be designat$ "u    
p>agraph 7#a74  7g7 ,p]iod = :i*        
designation is 9 effect ,a designation z
 a qualifi$ opportunity zone %all rema9 
9 effect = ! p]iod beg9n+ on ! date ( ! 
designation & end+ at ! close ( ! #aj?  

cal5d> ye> beg9n+ on or aft] su* date ( 
designation4  #adjj,z-#b4 ,tempor>y     
capital ga9s def]ral = ga9 inve/$ 9     
opportunity zones  7a7 ,9 g5]al  7#a7   
,maximum am\nt ( ga9 ,qualifi$ capital  
ga9 f ! sale or ex*ange to an unrelat$  
p]son ( any asset held by ! taxpay] &   
:i* ! taxpay] elects ! application ( ?is
 section %all be ! am\nt by :i* ! am\nt 
realiz$ on su* sale or ex*ange exce$s-- 
7,a7 ! sum (-- 7i7 ! co/ ( any qualifi$ 
opportunity zone asset acquir$ by !     
taxpay] dur+ ! #ahj-;day p]iod beg9n+ on
 ! date ( su* sale1 plus  7ii7 ! am\nt  
inve/$ 9 a qualifi$ opportunity fund    
acquir$ by ! taxpay] dur+ ! #ahj-;day   
p]iod beg9n+ on ! date ( su* sale1 r$uc$
 by  7,b7 any portion ( su* co/ &       
inve/m5t previ\sly tak5 into acc\nt "u  
?is section4  7#b7 ,am\nt ( ga9         
recogniz$ ,! am\nt recogniz$ f ! sale or
 ex*ange ( an asset :i* is subject to   
p>agraph 7#a7 %all be ! am\nt equal to !
 qualifi$ capital ga9 multipli$ by !    
same ratio z--  7,a7 ! excess ( ! total 

am\nt realiz$ on su* sale or ex*ange ov]
 ! sum ( ! am\nts det]m9$ "u            
subp>agraphs 7,a77i71 7,a77ii71 & 7,b7 (
 p>agraph 7#a71 be>s to  7,b7 ! total   
am\nt realiz$ on su* sale or ex*ange4   
7#c7 ,am\nt ( ga9 def]r$ ,except z      
provid$ by subsection 7c71 any am\nt (  
qualifi$ capital ga9 n recogniz$ by     
reason ( p>agraph 7#b7 %all be recogniz$
 on ! e>li] (--  7,a7 ! date on :i* su* 
qualifi$ opportunity zone asset or      
inve/m5t ) respect to :i* su* qualifi$  
capital ga9 is allocat$ is dispos$ (1   
except to ! ext5t an additional def]ral 
is provid$ "u p>agraph 7#a7 ) respect to
 su* disposition by reason ( !          
acquisition ( a qualifi$ opportunity    
zone asset or inve/m5t 9 a qualifi$     
opportunity fund1 or  7,b7 ,decemb] #ca1
 #bjbe4  7b7 ,qualifi$ opportunity zone 
asset ,= purposes ( ?is section3  7#a7  
,9 g5]al ,! t]m qualifi$ opportunity    
zone asset means-- 7,a7 any qualifi$    
opportunity zone /ock1  7,b7 any        
qualifi$ opportunity zone p>tn]%ip      

int]e/1 &  7,c7 any qualifi$ opportunity
 zone bus9ess prop]ty4  7#b7 ,qualifi$  
opportunity zone /ock  7,a7 ,9 g5]al    
,except z provid$ 9 subp>agraph 7,b71 ! 
t]m qualifi$ opportunity zone /ock means
 any /ock 9 a dome/ic corporation if--  
7i7 su* /ock is acquir$ by ! taxpay]    
aft] ,decemb] #ca1 #bjaf1 at its orig9al
 issue 7directly or ?r\gh an und]writ]7 
f ! corporation solely 9 ex*ange = ca%1 
7ii7 z ( ! "t su* /ock 0 issu$1 su*     
corporation 0 a qualifi$ opportunity    
zone bus9ess 7or1 9 ! case ( a new      
corporation1 su* corporation 0 be+      
organiz$ = purposes ( be+ a qualifi$    
opportunity zone bus9ess71 &  7iii7 dur+
 sub/antially all ( ! taxpay]'s hold+   
p]iod = su* /ock1 su* corporation       
qualifi$ z a qualifi$ opportunity zone  
bus9ess4  7,b7 ,r$emptions ,a rule      
simil> to ! rule ( section #abjb7;c77#c7
 %all apply = purposes ( ?is p>agraph4  
7#c7 ,qualifi$ opportunity zone p>tn]%ip
 int]e/ ,! t]m qualifi$ opportunity zone
 p>tn]%ip int]e/ means any capital or   

pr(its int]e/ 9 a dome/ic p>tn]%ip if-- 
7,a7 su* int]e/ is acquir$ by ! taxpay] 
aft] ,decemb] #ca1 #bjaf1 f ! p>tn]%ip  
solely 9 ex*ange = ca%1  7,b7 z ( ! "t  
su* int]e/ 0 acquir$1 su* p>tn]%ip 0 a  
qualifi$ opportunity zone bus9ess 7or1 9
 ! case ( a new p>tn]%ip1 su* p>tn]%ip 0
 be+ organiz$ = purposes ( be+ a        
qualifi$ opportunity zone bus9ess71 &   
7,c7 dur+ sub/antially all ( ! taxpay]'s
 hold+ p]iod = su* int]e/1 su* p>tn]%ip 
qualifi$ z a qualifi$ opportunity zone  
bus9ess4  7#d7 ,qualifi$ opportunity    
zone bus9ess prop]ty  7,a7 ,9 g5]al ,!  
t]m qualifi$ opportunity zone bus9ess   
prop]ty means tangible prop]ty us$ 9 a  
trade or bus9ess ( ! taxpay] if-- 7i7   
su* prop]ty 0 acquir$ by ! taxpay] by   
pur*ase 7z def9$ 9 section #agi7;d77#b77
 aft] ,decemb] #ca1 #bjaf1  7ii7 !      
orig9al use ( su* prop]ty 9 ! qualifi$  
opportunity zone comm5ces ) ! taxpay] or
 ! taxpay] sub/antially improves !      
prop]ty1 &  7iii7 dur+ sub/antially all 
( ! taxpay]'s hold+ p]iod = su* prop]ty1

 sub/antially all ( ! use ( su* prop]ty 
0 9 a qualifi$ opportunity zone4  7,b7  
,sub/antial improvem5t ,= purposes (    
subp>agraph 7,a77ii71 prop]ty %all be   
treat$ z sub/antially improv$ by !      
taxpay] only if1 dur+ any #cj-mon? p]iod
 beg9n+ aft] ! date ( acquisition ( su* 
prop]ty1 additions to basis ) respect to
 su* prop]ty 9 ! h&s ( ! taxpay] exce$  
an am\nt equal to ! adju/$ basis ( su*  
prop]ty at ! beg9n+ ( su* #cj-mon? p]iod
 9 ! h&s ( ! taxpay]4  7,c7 ,relat$ p>ty
 ,= purposes ( subp>agraph 7,a77i71 !   
relat$ p]son rule ( section #agi7;d77#b7
 %all be appli$ pursuant to p>agraph    
7#h7 ( ?is subsection 9 lieu ( !        
application ( su* rule 9 section        
#agi7;d77#b77;,a74  7#e7 ,qualifi$      
capital ga9  7,a7 ,9 g5]al ,except z    
o!rwise provid$ 9 ?is subsection1 ! t]m 
qualifi$ capital ga9 means any ga9      
recogniz$ on ! sale or ex*ange (-- 7i7 a
 capital asset1 or  7ii7 prop]ty us$ 9 !
 trade or bus9ess 7z def9$ 9 section    
#abca7;b774  7,b7 ,c]ta9 ga9 n qualifi$ 

,! t]m qualifi$ capital ga9 %all n      
include any ga9 :i* w\ld be treat$ z    
ord9>y income "u section #abde or "u    
section #abej if section #abej appli$ to
 all depreciation r ?an ! additional    
depreciation4  7,c7 ,relat$ p>ty        
transactions ,! t]m qualifi$ capital ga9
 %all n include any ga9 attributable1   
directly or indirectly1 9 :ole or 9 "p1 
to a transaction ) a relat$ p]son4  7#f7
 ,qualifi$ opportunity fund ,! t]m      
qualifi$ opportunity fund means any     
inve/m5t vehicle organiz$ z a           
corporation or a p>tn]%ip = ! purpose ( 
inve/+ 9 qualifi$ opportunity zone      
assets t holds at lea/ #ij p]c5t ( its  
assets 9 qualifi$ opportunity zone      
assets1 det]m9$--  7,a7 on ! la/ day ( !
 fir/ #f-mon? p]iod ( ! taxable ye> ( ! 
fund1 &  7,b7 on ! la/ day ( ! taxable  
ye> ( ! fund4  7#g7 ,qualifi$           
opportunity zone bus9ess  7,a7 ,9 g5]al 
,! t]m qualifi$ opportunity zone bus9ess
 means a trade or bus9ess-- 7i7 9 :i*   
sub/antially all ( ! tangible prop]ty   

own$ or leas$ by ! taxpay] is qualifi$  
opportunity zone bus9ess prop]ty1  7ii7 
:i* satisfies ! requirem5ts ( p>agraphs 
7#b71 7#d71 & 7#h7 ( section            
#acig;,c7b71 &  7iii7 :i* is n describ$ 
9 section #add7;c77#f77;,b74  7,b7      
,special rule ,= purposes ( subp>agraph 
7,a71 tangible prop]ty t ceases to be a 
qualifi$ opportunity zone bus9ess       
prop]ty %all cont9ue to be treat$ z a   
qualifi$ opportunity zone bus9ess       
prop]ty = ! less] (--  7i7 #e ye>s aft] 
! date on :i* su* tangible prop]ty      
ceases to be s qualifi$1 or  7ii7 ! date
 on :i* su* tangible prop]ty is no long]
 held by ! qualifi$ opportunity zone    
bus9ess4  7#h7 ,relat$ p]sons ,=        
purposes ( ?is subsection1 p]sons are   
relat$ to ea* o!r if su* p]sons are     
describ$ 9 section #bfg7;b7 or          
#gjg7;b77#a71 det]m9$ by sub/itut+ #bj  
p]c5t = #ej p]c5t ea* place x occurs 9  
su* sections4  7c7 ,basis  7#a7 ,9 g5]al
 ,! basis ( a qualifi$ opportunity zone 
asset1 & ( an inve/m5t 9 a qualifi$     

opportunity fund1 imm$iately aft] its   
acquisition "u subsection 7a7 %all be ! 
am\nt det]m9$ "u subsection             
7a77#a77;,a71 r$uc$ by ! am\nt recogniz$
 "u subsection 7a77#b74  7#b7 ,asset    
held = #e or m ye>s ,except z provid$ by
 p>agraph 7#c71 ! basis ( ! qualifi$    
opportunity zone asset1 & ( an inve/m5t 
9 a qualifi$ opportunity fund1 det]m9$  
"u p>agraph 7#a7 %all be increas$ by an 
am\nt equal to--  7,a7 9 ! case t su*   
asset is held by ! taxpay] = #e ye>s1 by
 #aj p]c5t ( su* capital ga9 n recogniz$
 "u subsection 7a71 &  7,b7 9 addition  
to ! increase "u subp>agraph 7,a71 9 !  
case t su* asset is held by ! taxpay] = 
#g ye>s1 by #e p]c5t ( su* capital ga9 n
 recogniz$ "u subsection 7a74  7#c7     
,exemption f capital ga9s on ga9 (      
long-t]m inve/m5ts ,9 ! case ( ! sale or
 ex*ange ( a qualifi$ opportunity zone  
asset1 & ( an inve/m5t 9 a qualifi$     
opportunity fund1 held = m ?an #aj ye>s1
 at ! election ( ! taxpay] ! basis ( su*
 asset or inve/m5t 9 ! h&s ( ! taxpay]  

%all be ! fair m>ket value ( su* asset  
or inve/m5t 7z ! cases may be7 at ! date
 ( su* sale or ex*ange4  7#d7 ,def]r$   
recognition ,9 ! case ( recognition (   
capital ga9 "u subsection 7a77#b71 !    
basis ( ! qualifi$ opportunity zone     
asset1 or inve/m5t 9 a qualifi$         
opportunity fund1 %all be increas$ by ! 
am\nt ( capital ga9 s recogniz$4  7d7   
,applicable rules  7#a7 ,9 g5]al ,=     
purposes ( ?is section & except z       
o!rwise provid$ 9 ?is section1 rules    
simil> to ! rules applicable to def]r$ l
 k9d ex*anges "u section #ajca %all     
apply except t re9ve/m5t 9 opportunity  
zone prop]ty ne$ n require an int]m$i>y 
p>ty4  7#b7 ,regulations ,! ,secret>y   
%all prescribe su* regulations z may be 
necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+--  7,a7 
rules requir+ taxpay]s to provide su*   
in=mation z ! ,secret>y det]m9es to be  
necess>y or appropriate = !             
id5tification ( bo? ! assets sold       
7includ+ basis & sale price7 & ! assets 

acquir$ & inve/m5ts made1 &  7,b7 rules 
to prev5t abuse4  7#c7 ,dec$5ts ,9 !    
case ( a dec$5t1 am\nts recogniz$ "u ?is
 section %all1 if n prop]ly includible 9
 ! gross income ( ! dec$5t1 be          
includible 9 gross income z provid$ by  
section #fia4  7e7 ,failure ( qualifi$  
opportunity fund ,to ma9ta9 inve/m5t    
/&>d  7#a7 ,9 g5]al ,if a qualifi$      
opportunity fund fails to meet ! #ij    
p]c5t requirem5t ( subsection 7b77#f71 !
 qualifi$ opportunity fund %all pay a   
p5alty = ea* mon? x fails to meet !     
requirem5t 9 an am\nt equal to ! product
 (--  7,a7 ! excess (-- 7i7 ! am\nt     
equal to #ij p]c5t ( its aggregate      
assets1 ov]  7ii7 ! aggregate am\nt (   
qualifi$ opportunity zone assets held by
 ! fund1 multipli$ by  7,b7 ! und]paym5t
 rate e/abli%$ "u section #ffba7;a77#b7 
= su* mon?4  7#b7 ,special rule =       
p>tn]%ips ,9 ! case t ! qualifi$        
opportunity fund is a p>tn]%ip1 ! p5alty
 impos$ by p>agraph 7#a7 %all be tak5   
into acc\nt proportionately z "p ( !    

di/ributive %>e ( ea* p>tn] ( !         
p>tn]%ip4  7#c7 ,reasonable cause       
exception ,no p5alty %all be impos$ "u  
?is subsection ) respect to any failure 
if x is %[n t su* failure is due to     
reasonable cause4  4  7b7 ,basis        
adju/m5ts ,section #ajaf7;a7 ( su* ,code
 is am5d$ by /rik+ & at ! end ( p>agraph
 7#cf71 by /rik+ ! p]iod at ! end (     
p>agraph 7#cg7 & ins]t+ 1 &1 & by ins]t+
 aft] p>agraph 7#cg7 ! foll[+3  7#ch7 to
 ! ext5t provid$ 9 section              
#adjj,z-#b7;c74  4  7c7 ,report to      
,congress ,! ,secret>y ( ! ,treasury1 or
 ! ,secret>y's delegate1 %all submit a  
report to ,congress on ! opportunity    
zone inc5tives enact$ by ?is section    
beg9n+ five ye>s aft] ! date ( enactm5t 
( ?is ,act & annually !reaft]4 ,! report
 %all include an assessm5t ( opportunity
 fund inve/m5ts nationally & at ! ,/ate 
level4 ,to ! ext5t su* in=mation is     
available1 ! report %all include ! numb]
 ( opportunity funds1 ! am\nt ( assets  
held 9 opportunity funds1 ! composition 

( opportunity fund inve/m5ts by asset   
class1 ! p]c5tage ( qualifi$ opportunity
 zone c5sus tracts designat$ "u sub*apt]
 ,z ( ! ,int]nal ,rev5ue ,code ( #aihf  
7z add$ by ?is section7 t h receiv$     
opportunity fund inve/m5ts4 ,! report   
%all also include an assessm5t ( !      
impacts & outcomes ( ! inve/m5ts 9 ^?   
areas on economic indicators includ+ job
 creation1 pov]ty r$uction1 & new       
bus9ess />ts1 o!r metrics z det]m9$ by !
 ,secret>y4  7d7 ,cl]ical am5dm5t ,!    
table ( sub*apt]s = *apt] #a ( su* ,code
 is am5d$ by add+ at ! end ! foll[+ new 
items3  ,sub*apt] ,z4 ,opportunity zones
  4  7e7 ,effective date ,! am5dm5ts    
made by ?is section %all take effect on 
! date ( ! enactm5t ( ?is ,act4