Last week, members of the U.S. House of Representatives introduced the Opportunity Zones Transparency, Extension, and Improvement Act, a legislation that would “require mandatory data reporting of opportunity zone investments to increase transparency and streamline the reporting process.”
Text of the bill, H.R. 5761, was not immediately available, but it’s expected to be similar to legislation introduced last year in the U.S. House and Senate that sought to extend the deferral date for opportunity zones investment from the end of 2026 to the end of 2028, expanded reporting requirements, allowing “funds of funds” to invest in other qualified opportunity funds, etc.
The bi-partisan legislation was introduced by Representatives Mike Kelly (R-Penn.) and Dan Kildee (D-Mich.), along with Representatives Carol Miller (R-W.Va.) and Terri Sewell (D-Ala.). Kelly is the current chair of the Ways and Means Subcommittee on Tax.
According to Economic Innovation Group, a bipartisan public policy organization, the Opportunity Zones Transparency, Extension, and Improvement Act includes:
- Reporting and community measurement requirements: The bill incorporates the bipartisan IMPACT Act (S.2994) to establish reporting and outcomes measurement standards related to the incentive and performance of designated communities;
- Early “sunset” opportunity zones with high median family income;
- Extend the deadline for OZ investments;
- Allow fund-of-fund investments;
- Designate certain formerly industrial brownfield tracts;
- Create a federal fund for state and local community resources.
“Creating Opportunity Zones have promoted businesses to settle in southern West Virginia and communities across the country. Promoting high-impact projects, particularly in rural and overlooked areas, will set future generations up for success and drive economic growth. The Opportunity Zones Transparency, Extension, and Improvement Act will advance success across the United States and establish a standard that all opportunity zone policies should follow,” said Rep. Miller.
Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.