,,ii #aagth ,,congress #b;d ,session ,s4 #djfe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #g1 #bjbb,mr4 ,booker 7for himself1 ,mr4 ,scott of ,south ,carolina1 ,mr4 ,warner1 ,mr4 ,young1 and ,mr4 ,van ,hollen7 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 modify the rules relating to qualified opportunity zones1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,opportunity ,zones ,transparency1 ,extension1 and ,improvement ,act4 #b4 ,findings ,congress makes the following findings3 7#a7 ,the #h1gfd population 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 #bf4d percent4 7#c7 ,fifty-four percent of the country's pockets of concentrated persistent poverty--meaning census tracts in which at least #dj percent of the population has lived in poverty since at least #aihj--;are qualified opportunity zones4 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 ,i ,modification of population census tracts designated as qualified opportunity zones #aja4 ,modification of population census tracts designated as qualified opportunity zones ,section #adjj,z-#a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,disqualification of certain population census tracts 7#a7 ,in general ,except as provided in paragraph 7#e71 any disqualified census tract shall not be treated as a qualified opportunity zone for any period after the date that is #cj days after the date on which the ,secretary publishes the final list of disqualified census tracts under paragraph 7#d77;,b74 7#b7 ,replacement zones 7,a7 ,in general ,the chief executive officer of a ,state may nominate additional population census tracts to replace any population census tract the designation of which as a qualified opportunity zone was terminated by reason of paragraph 7#a74 ,except as otherwise provided in this paragraph1 the rules of subsections 7b71 7c71 7d71 and 7f7 shall apply to any population census tract nominated under this paragraph4 7,b7 ,consultation ,no population census tract nominated under subparagraph 7,a7 may be designated as a qualified opportunity zone unless the chief executive officer of the ,state certifies in writing to the ,secretary that the chief executive officer has consulted with the chief executive officer 7or the equivalent7 of each local jurisdiction in which the population census tract is located4 7,c7 ,special rules ,for purposes of this subchapter-- 7i7 any population census tract which is a disqualified census tract 7as defined in paragraph 7#c7 without regard to subparagraph 7,a77i7 thereof7 may not be nominated as a qualified opportunity zone under this paragraph1 7ii7 the determination period with respect to a nomination under subparagraph 7,a7 shall be the #de-;day period beginning on the date on which the ,secretary publishes the final list of disqualified census tracts under paragraph 7#d77;,b71 as extended under subsection 7b77#b71 and 7iii7 the period for which any such designation is in effect shall be the period beginning on the date such designation takes effect and ending on the last day of the #ajth calendar year beginning on or after the designation date as a qualified opportunity zone for the population census tract which it is replacing as such a zone by reason of the termination under paragraph 7#a74 7,d7 ,regulations and guidance ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this paragraph4 7#c7 ,disqualified census tract ,for purposes of this subsection-- 7,a7 ,in general ,the term disqualified census tract means any population census tract which-- 7i7 was designated as a qualified opportunity zone before the date of the enactment of this subsection1 and 7ii7 is described in subparagraph 7,b7 or 7,c74 7,b7 ,high median family income tracts 7i7 ,in general ,except as provided in clauses 7ii7 and 7iii71 a population census tract is described in this subparagraph if the median family income for such tract exceeds #acj percent of the national median family income4 7ii7 ,exception ,clause 7i7 shall not apply if the poverty rate of such population census tract 7excluding students enrolled in an institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife77 is equal to or greater than #cj percent4 7iii7 ,request to retain designation for certain population census tracts ,clause 7i7 shall not apply if the ,secretary1 upon a request of the chief executive officer of the ,state made not later than #fj days after the date the ,secretary publishes the list described in paragraph 7#d77;,a71 determines that-- 7,i7 the designation of such population census tract was consistent with the purposes of this subchapter1 or 7,,ii7 the median family income for the population census tract does not exceed #acj percent of the national median family income4 7,c7 ,election to include additional population census tracts 7i7 ,in general ,a population census tract is described in this subparagraph if the ,secretary1 upon the request of the chief executive officer of the ,state submitted not later than #fj days after the date the ,secretary publishes the list described in paragraph 7#d77;,a71 determines that the continued designation of such population census tract as a qualified opportunity zone is not consistent with the purposes of this subchapter4 7ii7 ,regulations and guidance ,not later than #ab months after the date of the enactment of this subsection1 the ,secretary shall issue regulations or guidance with respect to the criteria to be used for making a determination by the ,secretary under clause 7i74 7#d7 ,identification and publication of disqualified census tracts 7,a7 ,initial identification ,as soon as practical1 but not later than #ab months after the date of the enactment of this subsection1 the ,secretary shall make public-- 7i7 a list of population census tracts described in paragraph 7#c77;,b7 7determined without regard to clause 7iii7 thereof71 and 7ii7 a list of population census tracts which are low-income communities and were not designated as a qualified opportunity zone before the date of enactment of this subsection4 7,b7 ,final list of disqualified census tracts ,not later than #aje days after the date the ,secretary publishes the list described in subparagraph 7,a71 the ,secretary shall make public a final list of disqualified census tracts4 7#e7 ,rules for qualified preexisting investments 7,a7 ,in general ,for purposes of this subchapter1 section #adjj,z-#b shall be applied without regard to paragraph 7#a7 with respect to any qualified preexisting trade or business4 7,b7 ,qualified preexisting trade or business ,for purposes of this paragraph-- 7i7 ,in general ,the term qualified preexisting trade or business means any trade or business of a qualified opportunity zone fund or qualified opportunity zone business which meets the requirements of clauses 7ii7 and 7iii7 of section #adjj,z-#b7;d77#c77;,a7 and which-- 7,i7 before the date of the enactment of this subsection1 filed a registration statement under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 or prepared any comparable offering memorandum or similar disclosure document provided in reliance on section #bcj4ejf of title #ag1 ,code of ,federal ,regulations 7or successor regulations71 promulgated under the ,securities ,act of #aicc1 that discloses the intent of such trade or business to invest in the disqualified census tract1 7,,ii7 before the first date on which the disqualified census tract appears on any list published under paragraph 7#d71 has made1 or has entered into to binding agreements to make1 investments in the disqualified census tract which-- 7aa7 aggregate more than #bej1jjj1 and 7bb7 have been designated in writing for the use in1 or the development of1 such trade or business1 or 7,,iii7 is determined by the ,secretary to have relied on the designation of the disqualified census tract as a qualified opportunity zone and to have suffered a loss as a result of the application of paragraph 7#a74 7ii7 ,trade or business ,the term trade or business includes any activity intended to qualify as a trade or business within the meaning of section #afb4 7,c7 ,regulations and guidance ,the ,secretary shall prescribe such regulations or guidance as may be necessary or appropriate to carry out the purposes of this paragraph1 including guidance to prevent speculative investment solely for the purpose of falling within the definition of a qualified preexisting trade or business4 7#f7 ,determination of population census tract data ,for purposes of applying this subsection1 in determining whether a population census tract meets any qualification with respect to poverty rate or any aspect of median income1 such determination shall be made using the most recent census data that has been published by the ,bureau of the ,census as of the date of enactment of this subsection4 4 #ajb4 ,certain former industrial tracts permitted to be designated as opportunity zones ,section #adjj,z-#a of the ,internal ,revenue ,code of #aihf1 as amended by section #aja1 is amended by adding at the end the following new subsection3 7h7 ,special rule for former industrial tracts contiguous to designated opportunity zones 7#a7 ,in general ,for purposes of this chapter1 the term qualified opportunity zone means an population census tract which is described in paragraph 7#b7 and designated as a qualified opportunity zone under this subsection4 7#b7 ,population census tract described ,a population census tract is described in this subparagraph if-- 7,a7 the tract-- 7i7 has a population of zero1 7ii7 was previously used for industrial purposes and is a brownfield industrial site1 and 7iii7 is contiguous1 including by water1 to a population census tract on at least #a side that has been designated as a qualified opportunity zone under this section1 or 7,b7 the tract was merged1 as a result of the #bjbj decennial census1 into a census tract described in subparagraph 7,a77iii7 and met all requirements described in subparagraph 7,a74 7#c7 ,designation ,for purposes of paragraph 7#a71 a population census tract that is described in paragraph 7#b7 is designated as a qualified opportunity zone if-- 7,a7 not later than #cj days after the date of the enactment of this subsection1 the chief executive officer of the ,state in which the tract is located-- 7i7 nominates the tract for designation as a qualified opportunity zone1 and 7ii7 notifies the ,secretary in writing of such nomination1 and 7,b7 not later than #cj days after receiving the notification under subparagraph 7,a77ii71 the ,secretary certifies such nomination and designates such tract as a qualified opportunity zone4 7#d7 ,determination of census tract information ,for purposes of this subsection1 the boundaries and population of a census tract shall be determined based on ,united ,states ,census ,bureau data for the #bjaj decennial census4 7#e7 ,number of designations ,population census tracts designated as a qualified opportunity zone under this subsection shall not be taken into account for purposes of subsection 7d74 7#f7 ,definitions ,for purposes of this subsection-- 7,a7 ,brownfield industrial site ,the term brownfield industrial site means a population census tract that includes real property the expansion1 redevelopment1 or reuse of which may be complicated by the presence or potential presence of a hazardous substance or pollutant or contaminant1 including real property covered by a prospective purchaser agreement or similar agreement entered into by the ,environmental ,protection ,agency or the appropriate ,state authority4 7,b7 ,hazardous substance ,the term hazardous substance means-- 7i7 a hazardous substance as defined in section #aja7ad7 of the ,comprehensive ,environmental ,response1 ,compensation1 and ,liability ,act of #aihj 7#db ,u4,s4,c4 #ifja7ad771 or 7ii7 petroleum or a petroleum product4 7,c7 ,pollutant or contaminant ,the term pollutant or contaminant has the meaning given such term in section #aja7cc7 of such ,act4 4 ,,ii ,information reporting requirements #bja4 ,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 qualified opportunity 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 qualified opportunity 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 qualified opportunity fund on each such date1 7#e7 with respect to each investment held by the qualified opportunity 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 population census tracts in which the qualified opportunity zone business 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 tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership1 7,f7 the value of tangible 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 the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year 7within numerical ranges identified by the ,secretary7 or such other indication of the employment impact of such corporation or partnership as determined appropriate by the ,secretary1 7#f7 with respect to the items of qualified opportunity zone business property held by the qualified opportunity 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 population census tract in which the property is located1 7,c7 whether the property is owned or leased1 7,d7 the aggregate value of the items of qualified opportunity zone property held by the qualified opportunity fund 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 the approximate average monthly number of full-time equivalent employees for the year of the trades or businesses of the qualified opportunity fund in which qualified opportunity zone business property is held 7within numerical ranges identified by the ,secretary7 or such other indication of the employment impact of such trades or businesses as determined appropriate by the ,secretary1 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 ,statement required ,to be furnished to investors ,every person required to make a return under subsection 7a7 shall furnish to each person whose name is required to be set forth in such return by reason of subsection 7b77#i7 a written statement showing-- 7#a7 the name1 address and phone number of the information contact of the person required to make such return1 and 7#b7 the information required to be shown on such return by reason of subsection 7b77#i7 with respect to such person4 7d7 ,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 any investment in a qualified opportunity fund 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 #fjci,m4 ,information required from certain qualified opportunity zone businesses 7a7 ,in general ,every applicable qualified opportunity zone business shall furnish to the qualified opportunity fund described in subsection 7b7 a written statement in such manner and setting forth such information as the ,secretary may by regulations prescribe for purposes of enabling such qualified opportunity fund to meet the requirements of section #fjci7;b77#e74 7b7 ,applicable qualified opportunity zone business ,for purposes of subsection 7a71 the term applicable qualified opportunity zone business means any qualified opportunity zone business 7as defined in section #adjj,z-#b7;d77#c77-- 7#a7 which is a trade or business of a qualified opportunity fund1 7#b7 in which a qualified opportunity fund holds qualified opportunity zone stock1 or 7#c7 in which a qualified opportunity fund holds a qualified opportunity zone partnership interest4 7c7 ,other terms ,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 7,a7 ,in general ,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 qualified opportunity 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 in 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 qualified opportunity funds ,in the case of any failure described in paragraph 7#a7 with respect to a fund 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 ,penalty in cases of intentional disregard ,if a failure described in paragraph 7#a7 is due to intentional disregard1 then-- 7,a7 paragraph 7#a7 shall be applied by substituting #b1ejj for #ejj1 7,b7 paragraph 7#b77;,a7 shall be applied by substituting #ej1jjj for #aj1jjj1 and 7,c7 paragraph 7#b77;,b7 shall be applied by substituting #bej1jjj for #ej1jjj4 7#d7 ,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 #bjbc1 each of the dollar amounts in paragraphs 7#a71 7#b71 and 7#c7 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 #bjbb for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding 7i7 ,in general ,if the #ejj dollar amount in paragraphs 7#a7 and 7#c77;,a7 or the #b1ejj amount in paragraph 7#c77;,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 or 7#c7 7other than any amount to which clause 7i7 or 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 #bjbc1 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 #bjbb 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,b7 ,information required to be sent to other taxpayers ,section #fgbd7;d77#b7 of such ,code is amended-- 7i7 by striking or at the end of subparagraph 7,,ii71 7ii7 by striking the period at the end of the first subparagraph 7,,jj7 7relating to section #fbbf7 and inserting a comma1 7iii7 by redesignating the second subparagraph 7,,jj7 7relating to section #fjej,y7 as subparagraph 7,,kk71 7iv7 by striking the period at the end of subparagraph 7,,kk7 7as redesignated by clause 7iii77 and inserting a comma1 and 7v7 by inserting after subparagraph 7,,kk7 7as so redesignated7 the following new subparagraphs3 7,,ll7 section #fjci,k7c7 7relating to disposition of qualified opportunity fund investments71 or 7,,mm7 section #fjci,m 7relating to information required from certain qualified opportunity zone businesses74 4 7#c7 ,electronic filing ,section #fjaa7;e7 of such ,code is amended by adding at the end the following new paragraph3 7#h7 ,qualified opportunity funds ,notwithstanding paragraphs 7#a7 and 7#b71 any return filed by a qualified opportunity fund shall be filed on magnetic media or other machine-readable form4 4 7#d7 ,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 ,sec4 #fjci,m4 ,information required from certain qualified opportunity zone businesses4 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#e7 ,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 include1 to the extent available1 the following information3 7,a7 ,the number of qualified opportunity funds4 7,b7 ,the aggregate dollar amount of assets held in qualified opportunity funds4 7,c7 ,the aggregate dollar 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 population census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments4 7,e7 ,for each population census tract designated as a qualified opportunity zone1 the approximate average monthly number of full-time equivalent employees of the qualified opportunity zone businesses in such qualified opportunity zone for the preceding #ab-month period 7within numerical ranges identified by the ,secretary7 or such other indication of the employment impact of such qualified opportunity fund businesses as determined appropriate by the ,secretary4 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 population census tract1 the aggregate approximate number of residential units resulting from investments made by qualified opportunity funds in real property4 7,h7 ,the aggregate dollar amount of investments made by qualified opportunity funds in each population 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 population 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 population census tracts designated as a qualified opportunity zone1 a comparison 7based on aggregate information7 of the factors listed in clause 7iii7 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 population census tracts designated as a qualified opportunity zone1 a comparison 7based on aggregate information7 of the factors listed in clause 7iii7 for the most recent #e-year period for which data is available between such population census tracts and a similar population census tracts that were not designated as a qualified opportunity zone4 7ii7 ,control groups ,for purposes of clause 7i71 the ,secretary may combine population census tracts into such groups as the ,secretary determines appropriate for purposes of making comparisons4 7iii7 ,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 population census tract1 including the percentage of such persons who were not residents in the population census tract in the preceding year4 7,,iii7 ,individual1 family1 and household poverty rates4 7,,iv7 ,median family income of residents of the population census tract4 7,v7 ,demographic information on residents of the population census tract1 including age1 income1 education1 race1 and employment4 7,,vi7 ,the average percentage of income of residents of the population census tract spent on rent annually4 7,,vii7 ,the number of residences in the population census tract4 7,,viii7 ,the rate of home ownership in the population census tract4 7,,ix7 ,the average value of residential property in the population census tract4 7,x7 ,the number of affordable housing units in the population census tract4 7,,xi7 ,the number and percentage of residents in the population census tract that were not employed for the preceding year4 7,,xii7 ,the number of new business starts in the population census tract4 7,,xiii7 ,the distribution of employees in the population census tract by ,north ,american ,industry ,classification ,code4 7#d7 ,protection of identifiable return information ,in making reports required under this subsection1 the ,secretary-- 7,a7 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 information1 and 7,b7 if necessary to protect taxpayer return information1 may combine information required with respect to individual population census tracts into larger geographic areas4 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 ,,iii ,modification of rules for investments in qualified opportunity funds #cja4 ,extension of deferral period 7a7 ,in general ,subparagraph 7,b7 of section #adjj,z-#b7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjbf and inserting ,december #ca1 #bjbh4 7b7 ,modification of basis rule ,clause 7iv7 of section #adjj,z-#b7;b77#b77;,b7 of such ,code is amended by striking #g each place it appears in the text and in the heading and inserting #f4 7c7 ,effective date ,the amendments made by this section shall apply to amounts invested after ,december #bb1 #bjag4 #cjb4 ,modification of definition of qualified opportunity fund 7a7 ,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-- 7,a7 any qualified feeder fund1 or 7,b7 any other investment vehicle if-- 7i7 such investment vehicle is organized as a corporation or a partnership for the purpose of investing in qualified opportunity zone property 7other than another qualified opportunity fund71 and 7ii7 such investment vehicle 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-- 7,i7 on the last day of the first #f-month period of the taxable year of the fund1 and 7,,ii7 on the last day of the taxable year of the fund4 4 7b7 ,qualified feeder fund ,section #adjj,z-#b7;d7 of such ,code is amended by adding at the end the following new paragraph3 7#d7 ,qualified feeder fund ,the term qualified feeder fund means any investment vehicle that invests in a qualified opportunity fund if-- 7,a7 such investment vehicle is organized as a domestic partnership for the purpose of investing in one more corporations or partnerships described in paragraph 7#a77;,b71 7,b7 all investments made in the investment vehicle are made in cash1 and 7,c7 not less than #ie percent of the assets of which are equity investments in corporations or partnerships described in paragraph 7#a77;,b74 4 7c7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 ,,iv ,state and community dynamism fund #dja4 ,state and community dynamism fund 7a7 ,establishment ,there is established a ,state and ,community ,dynamism ,fund to support public and private investment1 including capital for qualified opportunity zones designated under section #adjj,z-#a7;a7 of the ,internal ,revenue ,code of #aihf1 and existing small business and community economic development programs and incentives1 to underserved businesses and communities4 7b7 ,allocation 7#a7 ,in general ,funds appropriated to the ,state and ,community ,dynamism ,fund shall be allocated to ,states4 7#b7 ,formula 7,a7 ,in general ,the ,secretary of the ,treasury shall determine the allocation by allocating ,federal funds among the ,states based on the proportion of prime working age adults in each ,state bears to the total of prime working age adults for all the ,states4 7,b7 ,minimum allocation ,the ,secretary shall adjust the allocations under subparagraph 7,a7 for each ,state to the extent necessary to ensure that no ,state receives less than #j4i percent of the ,federal funds4 7#c7 ,requirement ,to receive an allocation under paragraph 7#b71 a ,state shall certify that the ,state will use funds to-- 7,a7 build capacity in high-poverty1 underbanked1 rural1 and otherwise underserved communities2 7,b7 advance investment in minority-1 women1 and veteran-owned businesses2 7,c7 address workforce development in strategic sectors of the ,state's economy2 and 7,d7 align priorities to support affordably priced housing4 7#d7 ,suballocation ,a ,state may spend funds allocated under this subsection directly or suballocate the funds to other entities1 including units of general local government and nonprofits4 7#e7 ,eligible uses ,funds allocated under this subsection shall be used for any eligible use in a low-income community1 as defined in section #de;,d7e7 of the ,internal ,revenue ,code of #aihf1 including for-- 7,a7 operating support and community capacity building1 with priority to given to operating support and community capacity building in qualified opportunity zones1 including-- 7i7 personnel to support activities1 including coordination1 education1 and investment2 7ii7 community-level capacity building1 training1 and strategic planning2 7iii7 outreach1 technical assistance1 and professional services to underserved businesses and underserved opportunity zone fund managers2 7,b7 high-impact projects1 including-- 7i7 predevelopment costs associated with individual ,qualified ,opportunity ,zone projects2 and 7ii7 risk mitigation for qualified opportunity zone funds2 and 7,c7 administrative costs1 not to exceed #c percent of the funds allocated4 7#f7 ,eligible projects ,funds used for high-impact project activities1 as described in paragraph 7#e77;,b71 shall only be used for-- 7,a7 business with less than #bjj employees2 7,b7 projects that provide community goods or services1 including health care1 social services1 healthy food access1 education1 broadband1 and culture2 or 7,c7 affordable housing with at least #ej percent of the units that are affordable to families making less than #hj percent of area median family income4 7#g7 ,prioritization ,a ,state that receives funds under this section must prioritize activities that-- 7,a7 promote investment in projects that substantially support minorities1 as defined in section #abjd7;c7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahaa note71 or other targeted populations1 as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb72 and 7,b7 have demonstrated meaningful engagement with community stakeholders4 7c7 ,authorization of appropriations ,there is authorized to be appropriated #a1jjj1jjj1jjj to carry out this section4 7d7 ,,gao audit ,the ,comptroller ,general of the ,united ,states shall perform an annual audit of the ,fund and submit to the appropriate committees of ,congress a report containing the results of the audit4 7e7 ,annual report ,not later than ,march #ca of each year1 each ,state receiving funds under this title shall submit to the ,secretary a report on the performance of the ,state and participating entities in the ,state that includes-- 7#a7 an accounting of the expenditure of funds received by the ,state1 including on administrative or indirect costs2 7#b7 information on the number and characteristics of participants served under this title2 and 7#c7 a summary describing the training1 capacity-building1 and technical assistance offered by the ,state and participating entities4 7f7 ,definitions ,in this section3 7#a7 ,prime working age adults not employed ,the term prime working age adults not employed means1 with respect to a ,state1 the share of the adult population aged #be to #ed that was not employed for the most recent year for which data is available4 7#b7 ,state ,the term ,state includes the ,district of ,columbia1 any territory or possession of the ,united ,states1 and any ,indian ,tribe4