Bill > HR2292

This bill amends the Internal Revenue Code to create special tax incentives for investors who put capital gains into "qualified distressed opportunity funds" located in brownfield sites or Superfund sites (environmentally contaminated areas). The bill allows investors to defer and potentially reduce capital gains taxes if they invest their gains into these special investment funds within 180 days of selling an asset, with key provisions including: tax deferral until December 31, 2033, a potential 10% basis increase for investments held 5 years, an additional 5% basis increase for investments held 7 years, and a complete elimination of capital gains tax on the investment if held for at least 10 years. To qualify, these investment funds must hold at least 90% of their assets in specific types of qualified property within distressed opportunity zones, such as stock in local businesses, partnership interests, or tangible business property. The bill defines strict requirements for what constitutes a "qualified distressed opportunity zone business" and imposes penalties on funds that fail to maintain the required investment standards. This legislation aims to incentivize private investment in economically disadvantaged and environmentally challenged areas by offering significant tax benefits to investors willing to deploy capital in these regions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2292/all-info