,,ib ,union ,calendar ,no4 #ajj #aahth ,,congress #ast ,session ,h4 ,r4 #cicg ,report ,no4 #aah-abh ,,in ,,the ,,house ,,of ,,representatives ,june #i1 #bjbc,mr4 ,smith of ,missouri introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,june #cj1 #bjbc,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,june #i1 #bjbc ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to promote the establishment and growth of small businesses4 #a4 ,short title2 table of contents1 etc 7a7 ,short title ,this ,act may be cited as the ,small ,business ,jobs ,act 4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents1 etc4,sec4 #b4 ,increase in threshold for requiring information reporting with respect to certain payees4,sec4 #c4 ,restoration of reporting rule for third party network transactions4,sec4 #d4 ,modifications to exclusion for gain from qualified small business stock4,sec4 #e4 ,increase in limitations on expensing of depreciable business assets4,sec4 #f4 ,establishment of special rules for capital gains invested in rural opportunity zones4,sec4 #g4 ,reporting on qualified opportunity funds and qualified rural opportunity funds4 #b4 ,increase in threshold for requiring information reporting with respect to certain payees 7a7 ,in general ,sections #fjda7;a7 is amended by striking #fjj and inserting #e1jjj4 7b7 ,inflation adjustment ,section #fjda is amended by adding at the end the following new subsection3 7h7 ,inflation adjustment ,in the case of any calendar year after #bjbd1 the dollar amount in subsection 7a7 shall be increased by an amount equal to-- 7#a7 such dollar amount1 multiplied by 7#b7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting calendar year #bjbc for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any increase under the preceding sentence is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 4 7c7 ,application to reporting on remuneration for services and direct sales ,section #fjda;,a is amended-- 7#a7 in subsection 7a77#b71 by striking is #fjj or more and inserting equals or exceeds the dollar amount in effect for such calendar year under section #fjda7;a71 and 7#b7 in subsection 7b77#a77;,b71 by striking is #e1jjj or more and inserting equals or exceeds the dollar amount in effect for such calendar year under section #fjda7;a74 7d7 ,application to backup withholding ,section #cdjf7;b77#f7 is amended-- 7#a7 by striking #fjj in subparagraph 7,a7 and inserting the dollar amount in effect for such calendar year under section #fjda7;a71 and 7#b7 by striking only where aggregate for calendar year is #fjj or more in the heading and inserting only if in excess of threshold4 7e7 ,conforming amendments 7#a7 ,the heading of section #fjda7;a7 is amended by striking of #fjj or more and inserting exceeding threshold4 7#b7 ,section #fjda7;a7 is amended by striking taxable year and inserting calendar year4 7f7 ,effective date ,the amendments made by this section shall apply with respect to payments made after ,december #ca1 #bjbc4 #c4 ,restoration of reporting rule for third party network transactions 7a7 ,de minimis exception for third party settlement organizations ,section #fjej,w7e7 is amended to read as follows3 7e7 ,exception for de minimis payments by third party settlement organizations ,a third party settlement organization shall be required to report any information under subsection 7a7 with respect to third party network transactions of any participating payee only if-- 7#a7 the amount which would otherwise be reported under subsection 7a77#b7 with respect to such transactions exceeds #bj1jjj1 and 7#b7 the aggregate number of such transactions exceeds #bjj4 4 7b7 ,effective date ,the amendment made by this section shall apply to returns for calendar years beginning after ,december #ca1 #bjba4 #d4 ,modifications to exclusion for gain from qualified small business stock 7a7 ,phased increase in exclusion for gain from qualified small business stock 7#a7 ,in general ,section #abjb7;a77#a7 is amended-- 7,a7 by striking #ej percent and inserting the applicable percentage1 and 7,b7 by striking held for more than #e years and inserting held for at least #c years4 7#b7 ,applicable percentage ,section #abjb7;a7 is amended by adding at the end the following new paragraph3 7#e7 ,applicable percentage ,except as provided in paragraphs 7#c7 and 7#d71 the applicable percentage under paragraph 7#a7 shall be determined under the following table3 ,years stock held3,applicable percentage3#c years#ejd years#gee years or more#ajj 4 7#c7 ,continued treatment as not item of tax preference 7,a7 ,in general ,section #eg7;a77#g7 is amended by striking ,an amount and inserting ,in the case of stock acquired on or before the date of the enactment of the ,creating ,small ,business ,jobs ,act of #bjaj1 an amount4 7,b7 ,conforming amendment ,section #abjb7;a77#d7 is amended-- 7i7 by striking 1 and at the end of subparagraph 7,b7 and inserting a period1 and 7ii7 by striking subparagraph 7,c74 7#d7 ,other conforming amendments 7,a7 ,section #abjb7;a77#d7 is amended by inserting and before the date of the enactment of the ,small ,business ,jobs ,act after ,act of #bjaj4 7,b7 ,paragraphs 7#c7 and 7#d7 of section #abjb7;a7 are each amended by inserting held for more than #e years and after ,in the case of qualified small business stock4 7,c7 ,section #abjb7;a77#c77;,a7 of such ,code is amended to read as follows3 7,a7 the applicable percentage under paragraph 7#a7 shall be #ge percent1 and 1 7,d7 ,section #abjb7;a77#d77;,a7 is amended to read as follows3 7,a7 the applicable percentage under paragraph 7#a7 shall be #ajj percent1 and 4 7,e7 ,section #abjb7;b77#b7 is amended by striking more than #e years and inserting at least #c years4 7,f7 ,section #abjb7;g77#b77;,a7 is amended by striking more than #e years and inserting at least #c years4 7,g7 ,section #abjb7;j77#a77;,a7 is amended by striking more than #e years and inserting at least #c years4 7b7 ,tacking holding period of convertible debt instruments 7#a7 ,in general ,section #abjb7;f7 is amended-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b7 and moving such subparagraphs 7as so redesignated7 #b ems to the right1 7,b7 by striking conversion of other stock4--,if any stock and inserting the following3 conversion4-- 7#a7 ,other stock ,if any stock 1 and 7,c7 by adding at the end the following new paragraph3 7#b7 ,convertible debt instruments 7,a7 ,in general ,if any stock in a corporation is acquired by the taxpayer1 without recognition of gain1 solely through the conversion of a qualified convertible debt instrument-- 7i7 the stock so acquired shall be treated as qualified small business stock in the hands of the taxpayer1 and 7ii7 the stock so acquired shall be treated as having been held during the period during which the qualified convertible debt instrument was held4 7,b7 ,qualified convertible debt instrument ,for purposes of this paragraph1 the term qualified convertible debt instrument means any bond or other evidence of indebtedness-- 7i7 which is originally issued by the corporation to the taxpayer1 7ii7 the issuer of which-- 7,i7 from issuance until conversion1 is a qualified small business1 and 7,,ii7 during substantially all of the taxpayer's holding period of such bond or evidence of indebtedness1 the corporation meets the active business requirements of subsection 7e71 and 7iii7 which is convertible into stock in the corporation4 4 7c7 ,gain exclusion allowed with respect to qualified small business stock in corporation 7#a7 ,in general ,section #abjb7;c7 is amended-- 7,a7 by striking ,c corporation in paragraph 7#a7 and inserting corporation1 and 7,b7 by striking and such corporation is a ,c corporation in paragraph 7#b77;,a74 7#b7 ,qualified small business definition ,section #abjb7;d77#a7 is amended by striking which is a ,c corporation4 7#c7 ,clarification of aggregation rules applicable to ,s corporations ,section #abjb7;d77#c7 is amended by adding at the end the following new subparagraph3 7,c7 ,clarification with respect to ,s corporations ,any determination of the members of a controlled group of corporations under this paragraph shall include taking into account any stock ownership in an ,s corporation4 4 7#d7 ,treatment of passive losses ,section #dfi7;g77#a7 is amended by adding at the end the following new subparagraph3 7,d7 ,certain dispositions of small business stock ,in the case a disposition any gain from which is excluded from gross income under section #abjb1 subparagraph 7,a7 shall not apply4 4 7#e7 ,special rules relating to ,s corporations ,section #abjb7;e7 is amended by adding at the end the following new paragraph3 7#i7 ,applied at ,s corporation level ,in the case of an ,s corporation1 the requirements of this subsection shall be applied at the corporate level4 4 7d7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to stock acquired after the date of the enactment of this ,act4 7#b7 ,continued treatment as not item of tax preference ,the amendments made by subsection 7a77#c7 shall take effect as if included in the enactment of section #bjaa the ,creating ,small ,business ,jobs ,act of #bjaj4 7#c7 ,tacking holding period of convertible debt instruments ,the amendments made by subsection 7b7 shall apply to debt instruments originally issued after the date of the enactment of this ,act4 #e4 ,increase in limitations on expensing of depreciable business assets 7a7 ,in general ,section #agi7;b7 is amended-- 7#a7 by striking #a1jjj1jjj in paragraph 7#a7 and inserting #b1ejj1jjj1 and 7#b7 by striking #b1ejj1jjj in paragraph 7#b7 and inserting #d1jjj1jjj4 7b7 ,inflation adjustment ,section #agi7;b77#f7 is amended-- 7#a7 by striking #bjah and inserting #bjbd 7#bjah in the case of the dollar amount in paragraph 7#e77;,a771 and 7#b7 by striking #8calendar year #bjag and inserting calendar year #bjbd 7calendar year #bjag in the case of the dollar amount in paragraph 7#e77;,a774 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service in taxable years beginning after ,december #ca1 #bjbc4 #f4 ,establishment of special rules for capital gains invested in rural opportunity zones 7a7 ,in general ,subchapter ,z of chapter #a is amended by adding at the end the following new section3 #adjj,z-#c4 ,special rules for capital gains invested in rural opportunity zones 7a7 ,in general 7#a7 ,treatment of gains ,in the case of capital gain from the sale to1 or exchange with1 an unrelated person of any property held by the taxpayer1 at the election of the taxpayer-- 7,a7 gross income for the taxable year shall not include so much of such gain as does not exceed the aggregate amount invested by the taxpayer in a qualified rural opportunity fund during the #ahj-;day period beginning on the date of such sale or exchange1 7,b7 the amount of gain excluded by subparagraph 7,a7 shall be included in gross income as provided by subsection 7b71 and 7,c7 subsection 7c7 shall apply4 7#b7 ,election ,no election may be made under paragraph 7#a7-- 7,a7 with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect1 or 7,b7 with respect to any sale or exchange after ,december #ca1 #bjcb4 7b7 ,deferral of gain invested in qualified rural opportunity zone property 7#a7 ,year of inclusion ,gain to which subsection 7a77#a77;,b7 applies shall be included in income in the taxable year which includes the earlier of-- 7,a7 the date on which such investment is sold or exchanged1 or 7,b7 ,december #ca1 #bjcb4 7#b7 ,amount includible 7,a7 ,in general ,the amount of gain included in gross income under subsection 7a77#a77;,a7 shall be the excess of-- 7i7 the lesser of the amount of gain excluded under paragraph 7#a7 or the fair market value of the investment as determined as of the date described in paragraph 7#a71 over 7ii7 the taxpayer's basis in the investment4 7,b7 ,determination of basis qualified rural opportunity zone property 7i7 ,in general ,except as otherwise provided in this clause or subsection 7c71 the taxpayer's basis in the investment shall be zero4 7ii7 ,increase for gain recognized under subsection 7a77#a77;b7 ,the basis in the investment shall be increased by the amount of gain recognized by reason of subsection 7a77#a77;,b7 with respect to such property4 7iii7 ,investments held for #e years ,in the case of any investment held for at least #e years1 the basis of such investment shall be increased by an amount equal to #aj percent of the amount of gain deferred by reason of subsection 7a77#a77;,a74 7iv7 ,investments held for #g years ,in the case of any investment held by the taxpayer for at least #g years1 in addition to any adjustment made under clause 7iii71 the basis of such property shall be increased by an amount equal to #e percent of the amount of gain deferred by reason of subsection 7a77#a77;,a74 7c7 ,special rule for investments held for at least #aj years ,in the case of any investment held by the taxpayer for at least #aj years and with respect to which the taxpayer makes an election under this subsection1 the basis of such property shall be equal to the fair market value of such investment on the date that the investment is sold or exchanged4 7d7 ,qualified rural opportunity fund ,for purposes of this section-- 7#a7 ,in general ,the term qualified rural opportunity fund means any investment vehicle which is organized as a corporation or a partnership for the purpose of investing in qualified rural opportunity zone property 7other than another qualified rural opportunity fund7 that holds at least #ij percent of its assets in qualified rural opportunity zone property1 determined by the average of the percentage of qualified rural opportunity zone property held in the fund as measured-- 7,a7 on the last day of the first #f-month period of the taxable year of the fund1 and 7,b7 on the last day of the taxable year of the fund4 7#b7 ,qualified rural opportunity zone property 7,a7 ,in general ,the term qualified rural opportunity zone property means property which is-- 7i7 qualified rural opportunity zone stock1 7ii7 qualified rural opportunity zone partnership interest1 or 7iii7 qualified rural opportunity zone business property4 7,b7 ,qualified rural opportunity zone stock 7i7 ,in general ,except as provided in clause 7ii71 the term qualified rural opportunity zone stock means any stock in a domestic corporation if-- 7,i7 such stock is acquired by the qualified rural opportunity fund after ,december #ca1 #bjbc1 at its original issue 7directly or through an underwriter7 from the corporation solely in exchange for cash1 7,,ii7 as of the time such stock was issued1 such corporation was a qualified rural opportunity zone business 7or1 in the case of a new corporation1 such corporation was being organized for purposes of being a qualified rural opportunity zone business71 and 7,,iii7 during substantially all of the qualified rural opportunity fund's holding period for such stock1 such corporation qualified as a qualified rural opportunity zone business4 7ii7 ,redemptions ,a rule similar to the rule of section #abjb7;c77#c7 shall apply for purposes of this paragraph4 7,c7 ,qualified rural opportunity zone partnership interest ,the term qualified rural opportunity zone partnership interest means any capital or profits interest in a domestic partnership if-- 7i7 such interest is acquired by the qualified rural opportunity fund after ,december #ca1 #bjbc1 from the partnership solely in exchange for cash1 7ii7 as of the time such interest was acquired1 such partnership was a qualified rural opportunity zone business 7or1 in the case of a new partnership1 such partnership was being organized for purposes of being a qualified rural opportunity zone business71 and 7iii7 during substantially all of the qualified rural opportunity fund's holding period for such interest1 such partnership qualified as a qualified rural opportunity zone business4 7,d7 ,qualified rural opportunity zone business property 7i7 ,in general ,the term qualified rural opportunity zone business property means tangible property used in a trade or business of the qualified rural opportunity fund if-- 7,i7 such property was acquired by the qualified rural opportunity fund by purchase 7as defined in section #agi7;d77#b77 after ,december #ca1 #bjbc1 7,,ii7 the original use of such property in the qualified rural opportunity zone commences with the qualified rural opportunity fund or the qualified rural opportunity fund substantially improves the property1 and 7,,iii7 during substantially all of the qualified rural opportunity fund's holding period for such property1 substantially all of the use of such property was in a qualified rural opportunity zone4 7ii7 ,substantial improvement ,for purposes of subparagraph 7,a77ii71 property shall be treated as substantially improved by the qualified rural opportunity fund only if1 during any #cj-month period beginning after the date of acquisition of such property1 additions to basis with respect to such property in the hands of the qualified rural opportunity fund exceed an amount equal to the adjusted basis of such property at the beginning of such #cj-month period in the hands of the qualified rural opportunity fund4 7iii7 ,related party ,for purposes of subparagraph 7,a77i71 the related person rule of section #agi7;d77#b7 shall be applied pursuant to subsection 7e77#b7 in lieu of the application of such rule in section #agi7;d77#b77;,a74 7#c7 ,qualified rural opportunity zone business 7,a7 ,in general ,the term qualified rural opportunity zone business means a trade or business-- 7i7 in which substantially all of the tangible property owned or leased by the taxpayer is qualified rural opportunity zone business property 7determined by substituting qualified rural opportunity zone business for qualified rural opportunity fund each place it appears in paragraph 7#b77;,d771 7ii7 which satisfies the requirements of paragraphs 7#b71 7#d71 and 7#h7 of section #acig;,c7b71 and 7iii7 which is not described in section #add7;c77#f77;,b74 7,b7 ,special rule ,for purposes of subparagraph 7,a71 tangible property that ceases to be a qualified rural opportunity zone business property shall continue to be treated as a qualified rural opportunity zone business property for the lesser of-- 7i7 #e years after the date on which such tangible property ceases to be so qualified1 or 7ii7 the date on which such tangible property is no longer held by the qualified rural opportunity zone business4 7#d7 ,qualified rural opportunity zone 7,a7 ,in general ,the term qualified rural opportunity zone means any population census tract which-- 7i7 is located in a rural county1 and 7ii7 is in persistent poverty 7as determined by the ,bureau of the ,census using the same methodology and data as used for purposes of the ,may #bjbc report of such ,bureau entitled ,persistent ,poverty in ,counties and ,census ,tracts74 7,b7 ,rural county ,the term rural county means any county if more than #ej percent of the census blocks which comprise such county are rural blocks 7as determined by the ,bureau of the ,census as of the date of the enactment of this ,act74 ,a rule similar to section #adc7k77#b77;,d7 shall apply for purposes of the preceding sentence4 7e7 ,applicable rules 7#a7 ,treatment of investments with mixed funds ,in the case of any investment in a qualified rural opportunity fund only a portion of which consists of investments of gain to which an election under subsection 7a7 is in effect-- 7,a7 such investment shall be treated as #b separate investments1 consisting of-- 7i7 one investment that only includes amounts to which the election under subsection 7a7 applies1 and 7ii7 a separate investment consisting of other amounts1 and 7,b7 subsections 7a71 7b71 and 7c7 shall only apply to the investment described in subparagraph 7,a77i74 7#b7 ,related persons ,for purposes of this section1 persons are related to each other if such persons are described in section #bfg7;b7 or #gjg7;b77#a71 determined by substituting #bj percent for #ej percent each place it occurs in such sections4 7#c7 ,decedents ,in the case of a decedent1 amounts recognized under this section shall1 if not properly includible in the gross income of the decedent1 be includible in gross income as provided by section #fia4 7#d7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section1 including-- 7,a7 rules for the certification of qualified rural opportunity funds for the purposes of this section1 7,b7 rules to ensure a qualified rural opportunity fund has a reasonable period of time to reinvest the return of capital from investments in qualified rural opportunity zone stock and qualified rural opportunity zone partnership interests1 and to reinvest proceeds received from the sale or disposition of qualified rural opportunity zone property1 and 7,c7 rules to prevent abuse4 7f7 ,failure of qualified rural opportunity fund to maintain investment standard 7#a7 ,in general ,if a qualified rural opportunity fund fails to meet the #ij-percent requirement of subsection 7d77#a71 the qualified rural opportunity fund shall pay a penalty for each month it fails to meet the requirement in an amount equal to the product of-- 7,a7 the excess of-- 7i7 the amount equal to #ij percent of its aggregate assets1 over 7ii7 the aggregate amount of qualified rural opportunity zone property held by the fund1 multiplied by 7,b7 the underpayment rate established under section #ffba7;a77#b7 for such month4 7#b7 ,special rule for partnerships ,in the case that the qualified rural opportunity fund is a partnership1 the penalty imposed by paragraph 7#a7 shall be taken into account proportionately as part of the distributive share of each partner of the partnership4 7#c7 ,reasonable cause exception ,no penalty shall be imposed under this subsection with respect to any failure if it is shown that such failure is due to reasonable cause4 4 7b7 ,clerical amendment ,the table of sections for subchapter ,z of chapter #a is amended by adding at the end the following new item3 ,sec4 #adjj,z-#c4 ,special rules for capital gains invested in rural opportunity zones4 4 7c7 ,effective date ,the amendments made by this section shall apply to amounts invested after the date of the enactment of this section4 #g4 ,reporting on qualified opportunity funds and qualified rural opportunity funds 7a7 ,in general 7#a7 ,filing requirements for funds and investors ,subpart ,a of part ,,iii of subchapter ,a of chapter #fa is amended by inserting after section #fjci;,j the following new sections3 #fjci,k4 ,returns with respect to qualified opportunity funds and qualified rural 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 ,system 7,,naics7 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 ,system 7,,naics7 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#h7 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#h7 with respect to the person whose name is required to be so set forth4 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 7e7 ,application to qualified rural opportunity funds ,every qualified rural opportunity fund shall file the annual return required under subsection 7a71 and the statements required under subsection 7c71 applied-- 7#a7 by substituting qualified rural opportunity for qualified opportunity each place it appears1 and 7#b7 by substituting section #adjj,z-#c7;d77#a7 for section #adjj,z-#b7;d77#a7 each place it appears4 #fjci,l4 ,information required from qualified opportunity zone businesses and qualified rural 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 #fjci,k7b77#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-- 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 7d7 ,application to qualified rural opportunity funds ,every qualified rural opportunity zone business 7as defined in subsection 7b7 determined after application of the substitutions described in this sentence7 shall furnish the written statement required under subsection 7a71 applied by substituting qualified rural opportunity for qualified opportunity each place it appears4 4 7#b7 ,penalties 7,a7 ,in general ,part ,,ii of subchapter ,b of chapter #fh is amended by inserting after section #fgbe the following new section3 #fgbf4 ,failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds 7a7 ,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 7b7 ,limitation 7#a7 ,in general ,the maximum penalty under this section 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 subsection 7a7 with respect to a fund the gross assets of which 7determined on the last day of the taxable year7 are in excess of #aj1jjj1jjj1 paragraph 7#a7 shall be applied by substituting #ej1jjj for #aj1jjj4 7c7 ,penalty in cases of intentional disregard ,if a failure described in subsection 7a7 is due to intentional disregard1 then-- 7#a7 subsection 7a7 shall be applied by substituting #b1ejj for #ejj1 7#b7 subsection 7b77#a7 shall be applied by substituting #ej1jjj for #aj1jjj1 and 7#c7 subsection 7b77#b7 shall be applied by substituting #bej1jjj for #ej1jjj4 7d7 ,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 subsections 7a71 7b71 and 7c7 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 7,a7 ,in general ,if the #ejj dollar amount in subsection 7a7 and 7c77#a7 or the #b1ejj amount in subsection 7c77#a71 after being increased under paragraph 7#a71 is not a multiple of #aj1 such dollar amount shall be rounded to the next lowest multiple of #aj4 7,b7 ,asset threshold ,if the #aj1jjj1jjj dollar amount in subsection 7b77#b71 after being increased under paragraph 7#a71 is not a multiple of #aj1jjj1 such dollar amount shall be rounded to the next lowest multiple of #aj1jjj4 7,c7 ,other dollar amounts ,if any dollar amount in subsection 7b7 or 7c7 7other than any amount to which subparagraph 7,a7 or 7,b7 applies71 after being increased under paragraph 7#a71 is not a multiple of #a1jjj1 such dollar amount shall be rounded to the next lowest multiple of #a1jjj4 4 7,b7 ,information required to be sent to other taxpayers ,section #fgbd7;d77#b7 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,l 7relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses74 4 7#c7 ,electronic filing ,section #fjaa7;e7 is amended by adding at the end the following new paragraph3 7#h7 ,qualified opportunity funds and qualified rural opportunity funds ,notwithstanding paragraphs 7#a7 and 7#b71 any return filed by a qualified opportunity fund or qualified rural 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 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 funds and qualified rural opportunity funds4 ,sec4 #fjci,l4 ,information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses4 4 7,b7 ,the table of sections for part ,,ii of subchapter ,b of chapter #fh 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 funds and qualified rural 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 and rural 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 property1 stated separately for each ,north ,american ,industry ,classification ,system 7,,naics7 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 ,system 7,,naics7 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 7#f7 ,reports on qualified rural opportunity funds ,the ,secretary shall make publicly available1 with respect to qualified rural opportunity funds1 separate reports as required under this subsection1 applied-- 7,a7 by substituting qualified rural opportunity for qualified opportunity each place it appears1 and 7,b7 by substituting the ,small ,business ,jobs ,act for ,public ,law #aae-ig4 ,june #cj1 #bjbc,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed