Bill > HR7467

This bill, the Opportunity Zones Improvement, Transparency, and Extension Act, makes several key changes to the qualified opportunity zone program: 1. It allows the Secretary of the Treasury to disqualify certain high-income census tracts from being designated as qualified opportunity zones, unless the chief executive officer of the state certifies that the designation is still consistent with the purposes of the program. The bill provides a process for states to nominate replacement zones. 2. It creates a new rule to allow certain former industrial census tracts that are contiguous to designated opportunity zones to also be designated as opportunity zones. 3. It imposes new information reporting requirements on qualified opportunity funds and investors, with penalties for noncompliance, and requires the Treasury Department to regularly report on the impacts of the opportunity zone incentive. 4. It extends the capital gains deferral period for investments in qualified opportunity funds from 2026 to 2028, and makes a related change to the basis step-up rules. 5. It modifies the definition of a qualified opportunity fund to include "qualified feeder funds" that invest in qualified opportunity funds. Additionally, the bill establishes a new "State and Community Dynamism Fund" to provide funding to states to support investment, small business, and economic development programs in underserved communities, including qualified opportunity zones.