,,ii  #aae? ,,congress  #a/ ,session    
,s4 #bic  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #b1 #bjag ,mr4
 ,scott 7= himself1 ,mr4 ,book]1 ,mr4   
,blunt1 ,mr4 ,b5net1 ,mr4 ,graham1 ,mr4 
,coons1 ,mrs4 ,capito1 ,mrs4 ,gillibr&1 
,mr4 ,pet]s1 ,mr4 ,g>dn]1 ,mr4 ,"y1 &   
,mr4 ,w>n]7 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         
opportunity 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 ,def]ral
 = capital ga9s inve/$ 9 opportunity    
zones4  #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 ,def]ral =    
capital ga9s inve/$ 9 opportunity zones 
7a7 ,special rules :5 ga9 f sale (      
prop]ty inve/$ 9 opportunity zone       
prop]ty  7#a7 ,exclusion ( ga9 inve/$ 9 
opportunity zone prop]ty ,9 ! case ( ga9
 f ! sale to1 or ex*ange )1 an unrelat$ 
p]son ( any prop]ty held by ! taxpay]1  
at ! election ( ! taxpay]--  7,a7 gross 
income = ! taxable ye> %all n include s 
mu* ( su* ga9 z does n exce$ ! aggregate
 co/ ( all qualifi$ opportunity zone    
prop]ty acquir$ by ! taxpay] dur+ !     
#ahj-;day p]iod beg9n+ on ! date ( su*  
sale or ex*ange1 &  7,b7 ! am\nt ( ga9  
exclud$ by subp>agraph 7,a7 %all be     
includ$ 9 gross income z provid$ by     
p>agraph 7#b74  7#b7 ,def]ral ( ga9     
inve/$ 9 opportunity zone prop]ty  7,a7 
,ye> ( inclusion ,except z provid$ by   
subp>agraph 7,c71 ga9 to :i* p>agraph   

7#a77;,b7 applies %all be includ$ 9     
income 9 ! taxable ye> 9 :i* ! qualifi$ 
opportunity zone prop]ty relat$ to su*  
ga9 is sold or ex*ang$ 9 ! am\nt det]m9$
 "u subp>agraph 7,b74  7,b7 ,am\nt      
includible ,! am\nt ( ga9 det]m9$ "u ?is
 clause %all be-- 7i7 #ajj p]c5t ( su*  
ga9 9 ! case ( ! sale or ex*ange ( !    
qualifi$ opportunity zone prop]ty )     
respect to :i* ga9 is def]r$ "u p>agraph
 7#a7 t is held = less ?an #e ye>s1     
7ii7 #ij p]c5t ( su* ga9 9 ! case ( !   
sale or ex*ange ( ! qualifi$ opportunity
 zone prop]ty ) respect to :i* ga9 is   
def]r$ "u p>agraph 7#a7 t is held = at  
lea/ #e ye>s b less ?an #g ye>s1 &      
7iii7 #he p]c5t ( su* ga9 9 ! case ( !  
sale or ex*ange ( ! qualifi$ opportunity
 zone prop]ty ) respect to :i* ga9 is   
def]r$ "u p>agraph 7#a7 t is held = at  
lea/ #g ye>s4  7,c7 ,prop]ty held aft]  
#bjbf treat$ z sold ,= purposes (       
subp>agraph 7,a71 any qualifi$          
opportunity zone prop]ty t has n be5    
sold or ex*ang$ on or be=e ,decemb] #ca1

 #bjbf1 %all be treat$ z sold on        
,decemb] #ca1 #bjbf4  7#c7 ,exclusion ( 
ga9 on qualifi$ opportunity zone prop]ty
 held = at lea/ #aj ye>s ,except z      
provid$ 9 p>agraph 7#b71 9 ! case ( !   
sale or ex*ange ( qualifi$ opportunity  
zone prop]ty1 or an inve/m5t 9 a        
qualifi$ opportunity fund1 held = at    
lea/ #aj ye>s1 gross income = ! taxable 
ye> %all n include any ga9 f ! sale or  
ex*ange ( su* prop]ty or inve/m5t4  7#d7
 ,"o election p] prop]ty ,no election   
may be made "u p>agraph 7#a7 ) respect  
to a sale or ex*ange if an election     
previ\sly made ) respect to su* sale or 
ex*ange is 9 effect4  7b7 ,basis rules  
relat+ to qualifi$ opportunity zone     
prop]ty  7#a7 ,r$uc$ by ga9 def]r$ "u   
subsection 7a77#a7 ,! basis ( a qualifi$
 opportunity zone prop]ty imm$iately    
aft] its acquisition "u subsection 7a7  
%all be r$uc$ by ! am\nt ( ga9 def]r$ by
 reason ( subsection 7a77#a77;,a7 )     
respect to su* prop]ty4  7#b7 ,increase 
= ga9 recogniz$ "u subsection 7a77#b7 ,!

 basis ( qualifi$ opportunity zone      
prop]ty %all be increas$ by ! am\nt (   
ga9 recogniz$ by reason ( subsection    
7a77#b7 ) respect to su* prop]ty4  7#c7 
,subsequ5t increase 9 basis = prop]ty   
held = at lea/ #e ye>s b less ?an #aj   
ye>s ,9 ! case ( qualifi$ opportunity   
zone prop]ty held = at lea/ #e ye>s b   
less ?an #aj ye>s--  7,a7 ,prop]ty held 
= #e ye>s ,= qualifi$ opportunity zone  
prop]ty held = at lea/ #e ye>s1 ! basis 
( su* prop]ty %all be increas$ by an    
am\nt equal to #aj p]c5t ( ! am\nt ( ga9
 def]r$ by reason ( subsection          
7a77#a77;,a7 ) respect to su* prop]ty4  
7,b7 ,prop]ty held = #g ye>s ,= qualifi$
 opportunity zone prop]ty held = at lea/
 #g ye>s1 ! basis ( su* prop]ty %all be 
increas$ by an am\nt equal to #e p]c5t (
 ! am\nt ( ga9 def]r$ by reason (       
subsection 7a77#a77;,a7 ) respect to su*
 prop]ty4  7c7 ,qualifi$ opportunity    
zone prop]ty ,= purposes ( ?is section3 
7#a7 ,9 g5]al ,! t]m qualifi$           
opportunity zone prop]ty means prop]ty  

:i* is--  7,a7 qualifi$ opportunity zone
 /ock1  7,b7 qualifi$ opportunity zone  
p>tn]%ip int]e/1  7,c7 qualifi$         
opportunity zone bus9ess prop]ty1 or    
7,d7 an int]e/ 9 a qualifi$ inve/m5t    
fund4  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 #bjag1 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 #bjag1 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 #bjag1  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$      
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 prop]ty 7o!r ?an ano!r
 qualifi$ opportunity fund7 t holds at  
lea/ #ij p]c5t ( its assets 9 qualifi$  
opportunity zone prop]ty1 det]m9$--     
7,a7 on ! la/ day ( ! fir/ #f-mon? p]iod
 ( ! taxable ye> ( ! fund1 &  7,b7 on ! 
la/ day ( ! taxable ye> ( ! fund4  7#f7 
,qualifi$ 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  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$i>y 
p>ty4  7#b7 ,relat$ 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
  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  7#d7        
,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 provid+ 
= proportionate inclusion 9 income &    
increases 9 basis = purposes (          
subsections 7a7 & 7b7 9 cases 9 :i* a   
sale or ex*ange ( any qualifi$          
opportunity zone prop]ty ) respect to   
:i* ga9 is def]r$ "u subsection         
7a77#a77;,a7 is less ?an all ( su*      
prop]ty1  7,b7 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,c7 rules 
to prev5t abuse4  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     
7c77#e71 ! 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 prop]ty 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;b74  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+ #e ye>s aft] ! date ( enactm5t ( 
?is ,act & annually !reaft]4 ,! report  
%all include an assessm5t ( inve/m5ts   
held by qualifi$ opportunity funds      
nationally & at ! ,/ate level4 ,to !    
ext5t su* in=mation is available1 !     
report %all include ! numb] ( qualifi$  
opportunity funds1 ! am\nt ( assets held
 9 qualifi$ opportunity funds1 !        
composition ( qualifi$ 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$ qualifi$           
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 
item3  ,sub*apt] ,z4 ,opportunity zones 

4  7e7 ,effective date ,! am5dm5ts made 
by ?is section %all take effect on !    
date ( ! enactm5t ( ?is ,act4