,,ii #aafth ,,congress #ast ,session ,s4 #bghg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #f1 #bjai,mr4 ,wyden introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to require reporting for qualified opportunity funds1 to make modifications to opportunity zones1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,opportunity ,zone ,reporting and ,reform ,act4 #b4 ,information reporting on qualified opportunity funds 7a7 ,in general 7#a7 ,filing requirements for funds and investors ,subpart ,a of part ,,iii of subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fjci;,j the following new sections3 #fjci,k4 ,returns with respect to qualified opportunity funds 7a7 ,in general ,every qualified opportunity fund shall file an annual return 7at such time and in such manner as the ,secretary may prescribe7 containing the information described in subsection 7b74 7b7 ,information from funds ,the information described in this subsection is-- 7#a7 the name1 address1 and taxpayer identification number of the qualified opportunity fund and the uniform resource locator 7,,url7 for the website for such fund1 7#b7 the value of all property held by the fund as of each date described in section #adjj,z-#b7;d77#a71 7#c7 the value of-- 7,a7 qualified opportunity zone stock held by the fund on each such date1 7,b7 qualified opportunity zone partnership interests held by the fund on each such date1 7,c7 qualified opportunity zone business property held by the fund on each such date1 7,d7 tangible property not described in subparagraphs 7,a71 7,b71 or 7,c7 and held by the fund on each such date1 and 7,e7 intangible property 7including cash and cash equivalents7 not described in subparagraphs 7,a71 7,b71 or 7,c7 and held by the fund on each such date1 7#d7 the name1 address1 and taxpayer identification number of-- 7,a7 each corporation in which the qualified opportunity fund owns stock1 and 7,b7 each partnership in which the qualified opportunity fund owns a capital or profits interest1 7#e7 with respect to each qualified opportunity zone business which is conducted by the qualified opportunity fund1 by a corporation in which the qualified opportunity fund owns stock1 or by a partnership in which the qualified opportunity fund owns a capital or profits interest-- 7,a7 the identity of the entity conducting the qualified opportunity zone business1 and 7,b7 each ,north ,american ,industry ,classification ,code that applies to such trade or business1 7#f7 with respect to each qualified opportunity zone business which is conducted by the qualified opportunity fund or by a corporation or partnership controlled by the qualified opportunity fund-- 7,a7 the value 7as of each date described in section #adjj,z-#b7;d77#a77 of-- 7i7 the tangible property of such business1 and 7ii7 the intangible property 7including cash and cash equivalents7 of such business1 and 7,b7 the average monthly number of full-time equivalent employees of such business during the reporting period1 7#g7 with respect to each qualified opportunity zone business property held by the fund or by a corporation or partnership controlled by the qualified opportunity fund-- 7,a7 the qualified opportunity zone with respect to the property1 7,b7 the date the property was acquired1 and 7,c7 in the case of real property-- 7i7 the square footage of such property1 7ii7 the number 7if any7 of residential units on the property1 and 7iii7 the aggregate costs incurred with respect to such property related to-- 7,i7 land acquisition1 7,,ii7 new construction1 and 7,,iii7 rehabilitation1 7#h7 with respect to each person who has investments in the qualified opportunity fund during the reporting period-- 7,a7 the name and taxpayer identification number of such person1 7,b7 the date or dates on which such investments were made1 and 7,c7 the total amount of such investments1 and 7#i7 such other information as the ,secretary may require4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,in general ,any term used in this section which is also used in subchapter ,z of chapter #a shall have the meaning given such term under such subchapter4 7#b7 ,control ,the term control has the meaning given such term under section #ied7;d77#c74 7#c7 ,full-time equivalent employees ,the term full-time equivalent employees means1 with respect to any month1 the sum of-- 7,a7 the number of full-time employees 7as defined in section #dihj;,h7c77#d77 for the month1 plus 7,b7 the number of employees determined 7under rules similar to the rules of section #dihj;,h7c77#b77;,e77 by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by #abj4 #fjci,l4 ,information on persons investing in qualified opportunity funds 7a7 ,in general ,every taxpayer who makes an investment in a qualified opportunity fund shall provide an annual statement 7at such time and in such manner as the ,secretary may prescribe7 containing the information described in subsection 7b74 7b7 ,information from investors ,the information described in this subsection is-- 7#a7 the name1 address1 and taxpayer identification number of the taxpayer1 7#b7 the name and taxpayer identification number of the qualified opportunity fund in which the investment was made1 7#c7 the date such investment was made in a qualified opportunity fund and the amount of such investment1 including a separate statement of the amount of any such investments which are gain for which an election was made under section #adjj,z-#b7;a77#a71 7#d7 the date of the disposition of the investment1 and 7#e7 such other information as the ,secretary may require4 7c7 ,definitions ,any term used in this section which is also used in subchapter ,z of chapter #a shall have the meaning given such term under such subchapter4 4 7#b7 ,penalties ,part ,,ii of subchapter ,b of chapter #fh of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fgbe the following new section3 #fgbf4 ,failure to comply with information reporting requirements relating to qualified opportunity funds 7a7 ,in general ,if-- 7#a7 any person is required to file a return under section #fjci,k or a statement under section #fjci,l for any period1 and 7#b7 fails-- 7,a7 to file such return or statement on or before the required filing date1 or 7,b7 fails to include all of the information required to be shown on the return or statement or includes incorrect information1 such person shall pay a penalty of #aj1jjj4 7b7 ,reduction where correction in specified period ,if any failure described in subsection 7a77#b7 is corrected on or before the day #cj days after the required filing date1 the penalty imposed by subsection 7a7 shall be #bej in lieu of the amount determined under such paragraph4 7c7 ,de minimis errors ,if-- 7#a7 there are #a or more such failures described in subsection 7a77#b77;,b7 relating to an incorrect dollar amount1 and 7#b7 no single amount in error differs from the correct amount by more than #be1 then no correction shall be required1 and1 for purposes of this section1 such return or statement shall be treated as having been filed with all correct required information4 7d7 ,penalty in cases of intentional disregard ,if #a or more failures described in subsection 7a77#b7 are due to intentional disregard of the filing requirement 7or the correct information reporting requirement71 then1 with respect to each such failure-- 7#a7 subsections 7b7 and 7c7 shall not apply1 and 7#b7 the amount of the penalty determined under subsection 7a7 shall be twice the amount which would be determined without regard to this paragraph4 7e7 ,inflation adjustment 7#a7 ,in general ,in the case of any failure relating to a return or statement required to be filed in a calendar year beginning after #bjbj1 each of the dollar amounts in subsections 7a7 and 7b7 shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7#b7 ,rounding ,the amount of any increase under paragraph 7#a7 shall be rounded to the nearest multiple of #ajj 7#aj in the case of any increase in the amount under subsection 7b774 4 7#c7 ,clerical amendments 7,a7 ,the table of sections for subpart ,a of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by inserting after the item relating to section #fjci;,j the following new items3 ,sec4 #fjci,k4 ,returns with respect to qualified opportunity funds4 ,sec4 #fjci,l4 ,information on persons investing in qualified opportunity funds4 4 7,b7 ,the table of sections for part ,,ii of subchapter ,b of chapter #fh of such ,code is amended by inserting after the item relating to section #fgbe the following new item3 ,sec4 #fgbf4 ,failure to comply with information reporting requirements relating to qualified opportunity funds4 4 7b7 ,information returns of qualified opportunity funds made public 7#a7 ,requirement to disclose ,subchapter ,b of chapter #fa of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fajd the following new section3 #fajd;,a4 ,publicity of information required from qualified opportunity funds 7a7 ,in general ,each qualified opportunity fund shall make publicly available on the website specified in section #fjci,k7b77#a7 a copy of each information return filed under section #fjci,k7a7 at all times during the #c-year period beginning on the last day prescribed for filing the return 7determined with regard to any extension of time for filing74 7b7 ,exceptions from disclosure requirement ,the information made public under subsection 7a7 shall not include-- 7#a7 any taxpayer identification number included on the return1 7#b7 the information described in paragraph 7#h7 of section #fjci,k7b71 and 7#c7 such other information as identified by the ,secretary to the extent the exclusion of such information is consistent with the purposes of this section4 7c7 ,qualified opportunity fund ,for purposes of this section1 the term qualified opportunity fund means a fund described in section #adjj,z-#b7;d74 4 7#b7 ,penalty 7,a7 ,in general ,section #ffhe of such ,code is amended-- 7i7 by inserting or the requirements of section #fajd;,a after section #fajd1 and 7ii7 by striking for certain tax-exempt organizations in the heading thereof4 7,b7 ,conforming amendment ,the item relating to section #ffhe in the table of sections for part ,i of subchapter ,b of chapter #fh of such ,code is amended by striking for certain tax-exempt organizations4 7#c7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #fa of such ,code is amended by inserting after the item relating to section #fajd the following new item3 ,sec4 #fajd;,a4 ,publicity of information required from qualified opportunity funds4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #c4 ,modification of tracts qualified to be designated as qualified opportunity zones 7a7 ,disqualification of certain census tracts 7#a7 ,census tracts with high median family income ,paragraph 7#a7 of section #adjj,z-#a7;c7 is amended to read as follows3 7#a7 ,low-income communities 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term low-income community has the same meaning as when used in section #de;,d7e74 7,b7 ,exception 7i7 ,in general ,such term shall not include any census tract if the median family income for such tract exceeds #abj percent of the national median family income 7as determined based on the most recent data published by the ,bureau of the ,census on the date of the enactment of the ,opportunity ,zone ,reporting and ,reform ,act74 7ii7 ,special rule ,clause 7i7 shall not apply to any census tract if-- 7,i7 the poverty rate for such tract is at least #bj percent1 and 7,,ii7 less than #aj percent of the population of such tract is enrolled in an institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife74 4 7#b7 ,contiguous census tracts ,section #adjj,z-#a of such ,code is amended by striking subsection 7e7 and redesignating subsection 7f7 as subsection 7e74 7b7 ,treatment of previously designated tracts ,section #adjj,z-#a of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a77#b71 is amended by adding at the end the following3 7f7 ,treatment of certain census tracts 7#a7 ,in general ,except as provided in section #adjj,z-#b7;d77#b77;,d71 any census tract 7other than a census tract in ,puerto ,rico7 which is not a low-income community and which was designated as a qualified opportunity zone before the date of the enactment of the ,opportunity ,zone ,reporting and ,reform ,act shall not be treated as a qualified opportunity zone on or after such date of enactment4 7#b7 ,replacement zones 7,a7 ,in general ,a ,state may designate a low-income community as a qualified opportunity zone to replace a census tract the status of which as a qualified opportunity zone was terminated by reason of paragraph 7#a74 7,b7 ,special rules ,for purposes of this subchapter-- 7i7 the determination period with respect to a designation under subparagraph 7,a7 shall be the #ij-;day period beginning on the date of the enactment of such ,act1 as extended under subsection 7b77#b71 and 7ii7 the period for which any such designation is in effect shall be the period beginning with the date such designation takes effect and ending with the last day of the #ajth calendar year beginning on or after the designation date as a qualified opportunity zone for the census tract which it is replacing as such a zone by reason of the termination under clause 7i74 4 7c7 ,treatment of existing investments ,section #adjj,z-#b7;d77#b77;,d7 of such ,code is amended by adding at the end the following new clause3 7iv7 ,special rule for investments in certain census tracts 7,i7 ,in general ,for purposes of applying this paragraph1 the use of property in a qualified census tract shall be treated as use of property in a qualified opportunity zone if the original use of such property occurred before ,november #f1 #bjai1 or in the case of property acquired before such date1 the property was substantially improved before the close of the #cj-month period beginning with the month of the acquisition4 7,,ii7 ,qualified census tract ,for purposes of this clause1 the term qualified census tract means any census tract which is not a low-income community and which was designated as a qualified opportunity zone before the date of the enactment of the ,opportunity ,zone ,reporting and ,reform ,act4 4 #d4 ,maintenance of geographic boundaries of qualified opportunity zones ,section #adjj,z-#a7;e7 of the ,internal ,revenue ,code of #aihf1 as redesignated by section #c7;a77#b71 is amended by adding at the end the following new sentence3 ,such designation shall apply to the geographic area as in effect at the time such tract is designated without regard to whether adjustments are made to the boundaries of the census tract so designated44 #e4 ,modification of prohibition on certain types of trades or business as qualified opportunity zone businesses 7a7 ,in general ,section #adjj,z-#b7;d77#c77;,a77iii7 of the ,internal ,revenue ,code of #aihf is amended by striking in section #add7;c77#f77;,b7 and inserting subsections 7a77#h77;,b7 or 7c77#f77;,b7 of section #add or section #adg7;e74 7b7 ,effective date ,the amendment made by this section shall take effect on ,november #f1 #bjai4 #f4 ,other modifications related to qualified opportunity funds 7a7 ,application of qualified opportunity zone business rules to trades or businesses conducted by qualified opportunity zone funds 7#a7 ,in general ,section #adjj,z-#b7;d77#a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,in general ,the term qualified opportunity fund means any investment vehicle-- 7,a7 which is organized as a corporation or a partnership for the purpose of investing in qualified opportunity zone property 7other than another qualified opportunity fund7 that holds at least #ij percent of its assets in qualified opportunity zone property1 determined by the average of the percentage of qualified opportunity zone property held in the fund as measured-- 7i7 on the last day of the first #f-month period of the taxable year of the fund1 and 7ii7 on the last day of the taxable year of the fund1 and 7,b7 any trade or business of which is a qualified opportunity zone business4 4 7#b7 ,effective date ,the amendments made by this subsection shall take effect as if included in section #achbc of ,public ,law #aae-ig4 7b7 ,clarification of substantially all 7#a7 ,in general ,section #adjj,z-#b7;d7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking during substantially all each place it appears in paragraphs 7#b77;,b77i77,,iii71 7#b77;,c77iii71 and 7#b77;,d77i77,,iii7 and inserting for not less than #ij percent1 7,b7 by striking substantially all of the use in paragraph 7#b77;,d77i77,,iii7 and inserting not less than #ij percent of the use1 and 7,c7 by striking in which substantially all in paragraph 7#c77;,a77i7 and inserting in which not less than #ij percent4 7#b7 ,effective date ,the amendments made by this subsection shall take effect as if included in section #achbc of ,public ,law #aae-ig4 7c7 ,certain property excluded from qualified opportunity zone business property 7#a7 ,in general ,section #adjj,z-#b7;d77#b77;,d7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in clause 7i71 by inserting 7other than self-storage property1 stadium property1 or disqualified residential rental property7 after tangible property1 and 7,b7 by adding at the end the following new clauses3 7iv7 ,self-storage property ,the term self-storage property means property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to such space for the purpose of storing and removing personal property4 7v7 ,stadium ,the term stadium property means any facility 7or appurtenant real property7 which1 during at least #e days during any calendar year1 is used as a stadium or arena for professional sports exhibitions1 games1 or training4 7vi7 ,disqualified residential rental property ,the term disqualified residential rental property means any residential rental property unless #ej percent or more of the residential units of such property are both rent-restricted 7within the meaning of section #db7;g77#b77 and occupied by individuals whose income is #ej percent or less of area median income4 4 7#b7 ,effective date ,the amendments made by this subsection shall take effect as if included in section #achbc of ,public ,law #aae-ig4 7d7 ,treatment of leased property 7#a7 ,in general ,section #adjj,z-#b7;d77#b77;,d77i77,i7 of the ,internal ,revenue ,code of #aihf is amended by inserting or under a lease 7other than a lease from a related person7 entered into after ,december #ca1 #bjag1 after ,december #ca1 #bjag14 7#b7 ,effective date ,the amendment made by this subsection shall take effect as if included in section #achbc of ,public ,law #aae-ig4 7e7 ,correction relating to original use of qualified opportunity zone business property 7#a7 ,in general ,section #adjj,z-#b7;d77#b77;,d77i77,,ii7 of the ,internal ,revenue ,code of #aihf is amended by striking in the qualified opportunity zone4 7#b7 ,effective date ,the amendment made by this subsection shall take effect as if included in section #achbc of ,public ,law #aae-ig4 7f7 ,modification of determination of substantial improvement of qualified opportunity zone business property 7#a7 ,in general ,section #adjj,z-#b7;d77#b77;,d77ii7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7including land7 after adjusted basis of such property4 7#b7 ,effective date ,the amendment made by this subsection shall take effect as if included in section #achbc of ,public ,law #aae-ig4 #g4 ,public list of qualified opportunity funds ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall maintain and make publicly available on the internet and at the offices of the ,internal ,revenue ,service-- 7#a7 a list of investment vehicles that are certified as qualified opportunity funds 7as defined in section #adjj,z-#b7;d77#a7 of the ,internal ,revenue ,code of #aihf7 pursuant to the rules established under section #adjj,z-#b7;e77#d77;,a7 of such ,code1 and 7#b7 the name1 address1 and the uniform resource locator 7,,url7 for the website for such fund4 #h4 ,,gao ,report 7a7 ,in general ,not later than each applicable date1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the effectiveness of the provisions of subchapter ,z of chapter #a of the ,internal ,revenue ,code of #aihf in achieving the policies of such provisions4 7b7 ,matters included ,the reports submitted under subsection 7a7 shall include an analysis of-- 7#a7 the distribution of investments of qualified opportunity funds among qualified opportunity zones1 7#b7 the distribution of such investments across different industries or investment purposes1 7#c7 the impact of the designation of an area as a qualified opportunity zone on-- 7,a7 economic indicators1 including employment1 new business start-ups1 and poverty reduction1 7,b7 housing costs1 and 7,c7 income distribution among residents of such zones1 7#d7 the economic benefits provided by such designations compared to economic costs1 and 7#e7 to the extent practicable1 the impact of the provisions of such subchapter ,z on low-income communities that have not been designated as qualified opportunity zones4 7c7 ,definitions 7#a7 ,applicable date ,the term applicable date means-- 7,a7 the date that is #e years after the date of the enactment of this ,act1 and 7,b7 the date that is #aj years after the date of the enactment of this ,act4 7#b7 ,other terms ,any term used in this section which is also used in subchapter ,z of chapter #a of the ,internal ,revenue ,code of #aihf shall have the meaning given such term under such subchapter4