H.R. 7242 — Introduced in House

I 115th CONGRESS 2d Session H. R. 7242 IN THE HOUSE OF REPRESENTATIVES December 10, 2018Mr. Meadows introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow certain areas affected by certain Federally declared disasters to be designated as opportunity zones. 1. Short title This Act may be cited as the Disaster Recovery and Opportunity Act of 2018. 2. Treatment as opportunity zones (a) In general Section 1400Z–1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Certain disaster zones (1) Designation With respect to a Federally declared disaster, the chief executive officer of a State may designate under this paragraph not more than 5 percent of the applicable disaster tracts in such State with respect to such disaster. (2) No effect on limitation on number of designations An applicable disaster tract designated under paragraph (1) shall not be taken into account in determining the limitation under subsection (d). (3) Applicable disaster tract The term applicable disaster tract means, with respect to a Federally declared disaster, a population census tract in the disaster area related to such disaster. (4) Federally declared disaster; disaster area In this subsection, the term Federally declared disaster and the term disaster area have the meaning given such terms in section 165(i). (5) Applicable start date (A) Qualified opportunity fund businesses and property In the case of an applicable disaster tract designated under paragraph (1), subparagraphs (B)(i)(I), (C)(i), and (D)(i)(I) of section 1400Z–2(d)(2) shall each be applied by substituting the applicable start date for December 31, 2017. (B) Extension of determination period In the case of an applicable disaster tract designated under paragraph (1), section (c)(2)(B) shall be applied by substituting the applicable start date for the date of the enactment of the Tax Cuts and Jobs Act. (C) Applicable start date The term applicable start date means, with respect to a disaster area, the earliest incident date specified in the declaration to which such area relates. . (b) Effective date The amendments made by this section shall apply with respect to Federally declared disasters declared after the date of the enactment of this Act.