Recently introduced bicameral legislation would reform Opportunity Zones, which provide tax incentives to those who reinvest unrealized capital gains into high-impact projects in underserved communities.
“Nationally, one of the best-known Opportunity Zones is in my congressional district in Erie, Pennsylvania,” said U.S. Rep. Mike Kelly (R-PA), who cosponsored the bill in the House. “Due to great community partners and private investment, local leaders have been able to leverage the revitalization of downtown Erie. Our new legislation will help ensure that Opportunity Zones can continue to revitalize communities like Erie for years and decades to come, along with giving taxpayer’s the peace of mind that the government is working for them locally.”
The Opportunity Zones Transparency, Extension, and Improvement Act would reinstate and expand reporting requirements; eliminate Opportunity Zone designations for tracts with a median family income at or above 130 percent of the national median family income; provide grants to high-poverty and underserved communities; extend the tax incentive for two years to facilitate continued investment; and create pathways for smaller-dollar impact investments by allowing Qualified Opportunity Funds (QOFs) to be organized as a “fund of funds” that may invest in other QOFs. This would provide smaller communities and projects with the financing they need.