,,ii #aafth ,,congress #ast ,session ,s4 #biid ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #e1 #bjai,mr4 ,scott of ,south ,carolina 7for himself1 ,mr4 ,grassley1 ,mr4 ,young1 ,mr4 ,gardner1 ,ms4 ,ernst1 ,mr4 ,cassidy1 ,mr4 ,rubio1 and ,mrs4 ,capito7 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 information reporting with respect to the qualified opportunity zone tax incentives enacted by the #bjag tax reform legislation1 to require public reports related to such tax incentives1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,improving and ,reinstating the ,monitoring1 ,prevention1 ,accountability1 ,certification1 and ,transparency ,provisions of ,opportunity ,zones or the ,,impact ,act4 #b4 ,findings ,congress makes the following findings3 7#a7 ,the #h1gfd census tracts designated as qualified opportunity zones under section #adjj,z-#a of the ,internal ,revenue ,code of #aihf span across all #ej ,states1 the ,district of ,columbia1 and #e ,territories and overwhelmingly represent communities that have been economically left behind as the ,american economy has surged forward4 7#b7 ,the average poverty rate of qualified opportunity zone residents is #bh4i percent4 7#c7 ,seventy-one percent of qualified opportunity zones meet the ,treasury ,department's definition of 8severely distressed04 7#d7 ,more adults in qualified opportunity zones lack a high school diploma than have a four-year college degree4 7#e7 ,the ,investing in ,opportunity ,act1 which originally proposed opportunity zones1 originally incorporated reporting requirements to evaluate the impact the incentive will have on designated communities and it is critical that ,congress act to reinstate reporting requirements as soon as possible4 #c4 ,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 fund1 7#b7 whether the qualified opportunity fund is organized as a corporation or a partnership1 7#c7 the value of the total assets held by the fund as of each date described in section #adjj,z-#b7;d77#a71 7#d7 the value of all qualified opportunity zone property held by the fund on each such date1 7#e7 with respect to each investment held by the fund in qualified opportunity zone stock or a qualified opportunity zone partnership interest-- 7,a7 the name1 address1 and taxpayer identification number of the corporation in which such stock is held or the partnership in which such interest is held1 as the case may be1 7,b7 each ,north ,american ,industry ,classification ,code that applies to the trades or businesses conducted by such corporation or partnership1 7,c7 the census tracts in which the qualified opportunity zone property of such corporation or partnership is located1 7,d7 the amount of the investment in such stock or partnership interest as of each date described in section #adjj,z-#b7;d77#a71 7,e7 the value of property held by such corporation or partnership on each such date which is owned by such corporation or partnership1 7,f7 the value of property held by such corporation or partnership on each such date which is leased by such corporation or partnership1 7,g7 the approximate number of residential units 7if any7 for any real property held by such corporation or partnership1 and 7,h7 whether the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year is-- 7i7 equal to or less than #be1 7ii7 greater than #be and equal to or less than #ej1 7iii7 greater than #ej and equal to or less than #ge1 7iv7 greater than #ge and equal to or less than #ajj1 7v7 greater than #ajj and equal to or less than #ejj1 7vi7 greater than #ejj or equal to or less than #a1jjj1 or 7vii7 greater than #a1jjj1 7#f7 with respect to each item of qualified opportunity zone business property held by the fund-- 7,a7 the ,north ,american ,industry ,classification ,code that applies to the trades or businesses in which such property is held1 7,b7 the census tract in which the property is located1 7,c7 whether the property is owned or leased1 7,d7 the value of the property as of each date described in section #adjj,z-#b7;d77#a71 and 7,e7 in the case of real property1 number of residential units 7if any71 7#g7 whether the average monthly number of full-time equivalent employees of the qualified opportunity fund for the year is-- 7,a7 equal to or less than #be1 7,b7 greater than #be and equal to or less than #ej1 7,c7 greater than #ej and equal to or less than #ge1 7,d7 greater than #ge and equal to or less than #ajj1 7,e7 greater than #ajj and equal to or less than #ejj1 7,f7 greater than #ejj or equal to or less than #a1jjj1 or 7,g7 greater than #a1jjj1 7#h7 with respect to each person who disposed of an investment in the qualified opportunity fund during the year-- 7,a7 the name and taxpayer identification number of such person1 7,b7 the date or dates on which the investment disposed was acquired1 and 7,c7 the date or dates on which any such investment was disposed and the amount of the investment disposed1 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 ,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 7b7 with respect to each such investment4 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 a description of such investment1 7#d7 the date such investment was made1 7#e7 the amount of short-term and long-term capital gains for which an election was made under section #adjj,z-#b7;a77#a7 for such investment1 7#f7 in the case of any disposition of such investment during the taxable year-- 7,a7 a description of the investment disposed1 7,b7 the date of the disposition1 and 7,c7 the amount of any previously deferred short-term and long-term capital gain included in income as a result of such disposition1 and 7#g7 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 ,information returns by funds 7#a7 ,in general ,in the case of any person required to file a return under section #fjci,k fails to file a complete and correct return under such section the time and in the manner prescribed therefor1 such person shall pay a penalty of #ejj for each day during which such failure continues4 7#b7 ,limitation 7,a7 ,in general ,the maximum penalty under this subsection on failures with respect to any #a return shall not exceed #aj1jjj4 7,b7 ,large funds ,in the case of any person the gross assets of which 7determined on the last day of the taxable year7 are in excess of #aj1jjj1jjj1 subparagraph 7,a7 shall be applied by substituting #ej1jjj for #aj1jjj4 7#c7 ,inflation adjustment 7,a7 ,in general ,in the case of any failure relating to a return required to be filed in a calendar year beginning after #bjbj1 each of the dollar amounts in paragraphs 7#a7 and 7#b7 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 7i7 ,in general ,if the dollar amount in paragraph 7#a71 after being increased under subparagraph 7,a71 is not a multiple of #aj1 such dollar amount shall be rounded to the next lowest multiple of #aj4 7ii7 ,asset threshold ,if the #aj1jjj1jjj dollar amount in paragraph 7#b77;,b71 after being increased under subparagraph 7,a71 is not a multiple of #aj1jjj1 such dollar amount shall be rounded to the next lowest multiple of #aj1jjj4 7iii7 ,other dollar amounts ,if any dollar amount in paragraph 7#b7 7other than the amount to which clause 7ii7 applies71 after being increased under subparagraph 7,a71 is not a multiple of #a1jjj1 such dollar amount shall be rounded to the next lowest multiple of #a1jjj4 7b7 ,statements by investors 7#a7 ,in general ,if-- 7,a7 any person is required to file a statement under section #fjci,l for any period1 and 7,b7 fails-- 7i7 to file such statement on or before the required filing date1 or 7ii7 fails to include all of the information required to be shown on the statement or includes incorrect information1 such person shall pay a penalty of #e1jjj4 7#b7 ,reduction where correction in specified period ,if any failure described in paragraph 7#a77;,b7 is corrected on or before the day #fj days after the required filing date1 the penalty imposed by paragraph 7#a7 shall be #ejj in lieu of the amount determined under such paragraph4 7#c7 ,de minimis errors ,if-- 7,a7 there are one or more such failures described in paragraph 7#a77;,b77ii7 relating to an incorrect dollar amount1 and 7,b7 no single amount in error differs from the correct amount by more than #ajj1 then no correction shall be required1 and1 for purposes of this section1 such statement shall be treated as having been filed with all correct required information4 7#d7 ,penalty in cases of intentional disregard ,if one or more failures described in paragraph 7#a77;,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 paragraphs 7#b7 and 7#c7 shall not apply1 and 7,b7 the amount of the penalty determined under paragraph 7#a7 shall be #be1jjj4 7#e7 ,inflation adjustment 7,a7 ,in general ,in the case of any failure relating to a statement required to be filed in a calendar year beginning after #bjbj1 each of the dollar amounts in paragraphs 7#a71 7#b71 and 7#d7 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 subparagraph 7,a7 shall be rounded to the nearest multiple of #ajj 7#aj in the case of any increase in the amount under paragraph 7#b774 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 7#d7 ,effective date ,the amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this ,act4 7b7 ,reporting of data on opportunity zone tax incentives 7#a7 ,in general ,as soon as practical after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of the ,treasury1 or the ,secretary's delegate 7referred to in this section as the ,secretary71 in consultation with the ,director of the ,bureau of the ,census and such other agencies as the ,secretary determines appropriate1 shall make publicly available a report on qualified opportunity funds4 7#b7 ,information included ,the report required under paragraph 7#a7 shall include the following information3 7,a7 ,the number of qualified opportunity funds4 7,b7 ,the aggregate amount of assets held in qualified opportunity funds4 7,c7 ,the aggregate amount of investments made by qualified opportunity funds in qualified opportunity fund property across each industry class under the ,north ,american ,industry ,classification ,code4 7,d7 ,the percentage of census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments4 7,e7 ,for each census tract designated as a qualified opportunity zone1 whether the average monthly number of full-time equivalent employees of qualified opportunity zone businesses for the preceding #ab-month period is-- 7i7 equal to or less than #be2 7ii7 greater than #be and equal to or less than #ej2 7iii7 greater than #ej and equal to or less than #ge2 7iv7 greater than #ge and equal to or less than #ajj2 7v7 greater than #ajj and equal to or less than #ejj2 7vi7 greater than #ejj or equal to or less than #a1jjj2 or 7vii7 greater than #a1jjj4 7,f7 ,the percentage of the total amount of investments made by qualified opportunity funds in-- 7i7 qualified opportunity zone property which is real property2 and 7ii7 other qualified opportunity zone property4 7,g7 ,for each census tract1 the aggregate approximate number of residential units for investments made by qualified opportunity funds in real property4 7,h7 ,the aggregate amount of investments made by qualified opportunity funds in each census tract4 7#c7 ,additional information 7,a7 ,in general ,beginning with the report submitted under paragraph 7#a7 for the #fth year after the date of the enactment of this ,act1 the ,secretary shall include in such report the impacts and outcomes of a designation of a census tract as a qualified opportunity zone as measured by economic indicators1 such as job creation1 poverty reduction1 new business starts1 and other metrics as determined by the ,secretary4 7,b7 ,semi-decennial information 7i7 ,in general ,in the case of any report submitted under paragraph 7#a7 in the #fth year or the #aath year after the date of the enactment of this ,act1 the ,secretary shall include the following information3 7,i7 ,for each census tract designated as a qualified opportunity zone1 a comparison 7based on aggregate information7 of the factors listed in clause 7ii7 between the #e-year period ending on the date of the enactment of ,public ,law #aae-ig and the most recent #e-year period for which data is available4 7,,ii7 ,for each census tract designated as a qualified opportunity zone1 a comparison 7based on aggregate information7 of the factors listed in clause 7ii7 for the most recent #e-year period for which data is available between such census tract and any census tract that was a low-income community eligible to be designated as a qualified opportunity zone but was not so designated4 7ii7 ,factors listed ,the factors listed in this paragraph are the following3 7,i7 ,the unemployment rate4 7,,ii7 ,the number of persons working in the census tract1 including the percentage of such persons who were not residents in the census tract in the preceding year4 7,,iii7 ,individual1 family1 and household poverty rates4 7,,iv7 ,median family income of residents of the census tract4 7,v7 ,demographic information on residents of the census tract1 including age1 income1 education1 race1 and employment4 7,,vi7 ,the average percentage of income of residents of the census tract spent on rent annually4 7,,vii7 ,the number of residences in the census tract4 7,,viii7 ,the average value of residential property in the census tract4 7,,ix7 ,the number of affordable housing units in the census tract4 7,x7 ,the number and percentage of residents in the census tract that were not employed for the preceding year4 7,,xi7 ,the number of new business starts in the census tract4 7,,xii7 ,the distribution of employees in the census tract by ,north ,american ,industry ,classification ,code4 7#d7 ,protection of identifiable return information ,in making reports required under this subsection1 the ,secretary shall establish appropriate procedures to ensure that any amounts reported do not disclose taxpayer return information that can be associated with any particular taxpayer or competitive or proprietary information4 7#e7 ,definitions ,any term used in this subsection 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