Legislation Introduced to Extend OZ Incentive Two Years, Add Reporting Requirements, Provide Early Sunset for Nonimpoverished Zones
Bipartisan legislation was introduced today in the Senate and House of Representatives that would extend the federal opportunity zones (OZ) incentive, add reporting requirements, provide an early sunset for nonimpoverished OZs and more. The Opportunity Zones Transparency, Extension and Improvement Act would extend the OZ incentive through the end of 2028 to facilitate continued investment, implement the reporting requirements that were included in 2017 in the Investing in Opportunities Act and sunset the OZ designation for census tracts with a median family income at or above 130% of the national median family income. The legislation would also allow qualified opportunity funds (QOFs) to be organized as “funds of funds” to invest in other QOFs which would allow smaller projects to receive funding. The bill would create a State and Community Dynamism Fund to provide grants to enable states to drive private and public capital to underserved businesses and communities.
Sponsors include Sens. Cory Booker, D-New Jersey; Tim Scott, R-South Carolina; Mark Warner D-Virginia; Chris Van Hollen, D-Maryland; and Todd Young, R-Indiana; as well as Reps. Ron Kind, D-Wisconsin; Mike Kelly, R-Pennsylvania; Terri Sewell, D-Alabama; Dan Kildee, D-Michigan; and Jackie Walorski, R-Indiana. In addition to the legislation, sponsors released a one-page description and section-by-section review of the bill.
Learn what the legislation could mean for various OZ stakeholders at the Novogradac 2022 Spring Opportunity Zones Conference, April 21-22 in Long Beach, California. The legislation will also be a topic of the April 12 Tax Credit Tuesday podcast.