Bill > HR5761

This bill, the Opportunity Zones Transparency, Extension, and Improvement Act, would make several changes to the Opportunity Zone program, which provides tax incentives for investment in certain economically distressed areas. The key provisions of the bill include: 1. Disqualifying certain high-income Opportunity Zones and allowing states to nominate replacement zones, while providing protections for existing investments in disqualified zones. 2. Allowing certain former industrial tracts contiguous to designated Opportunity Zones to be designated as Opportunity Zones. 3. Establishing new information reporting requirements for Qualified Opportunity Funds and investors, with penalties for non-compliance, to improve transparency and oversight of the program. 4. Extending the deadline for deferring capital gains invested in Qualified Opportunity Funds from December 31, 2026 to December 31, 2028. 5. Modifying the definition of a Qualified Opportunity Fund to include "qualified feeder funds" that invest in Qualified Opportunity Funds. 6. Establishing a new State and Community Dynamism Fund to support public and private investment, including in Opportunity Zones, in underserved businesses and communities. The bill aims to enhance the transparency and effectiveness of the Opportunity Zone incentive, while protecting existing investments and providing additional support for distressed communities.