To amend the Internal Revenue Code of 1986 to require fairness and diversity in opportunity zone investment and to require minimum investment in controlled-environment agriculture.

To amend the Internal Revenue Code of 1986 to require fairness and diversity in opportunity zone investment and to require minimum investment in controlled-environment agriculture. 1. Opportunity zone fairness and inclusion (a) In general Section 1400Z–2(d) (4) Opportunity Fund fairness and inclusion (A) In general A fund shall not be treated as a qualified opportunity fund for purposes of this section unless such fund— (i) meets the investment advisory board requirements of subparagraph (B), (ii) meets the investment diversity requirements of subparagraph (C), (iii) meets the affordable housing investment requirements of subparagraph (D), and (iv) with respect to each investment in an opportunity zone, assesses, and prepares a written report detailing, how such investment will affect different racial and ethnic groups within the zone and submits such report to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Joint Committee on Taxation. (B) Investment advisory board The requirements of this subparagraph shall not be treated as met with respect to any fund unless such fund has, for each qualified opportunity zone within which the fund invests in qualified opportunity zone property, an investment advisory board which— (i) is appointed by the local government of the jurisdiction within which the zone to which such advisory board relates is located, and (ii) advises the fund in directing investments in the zone for the benefit of the zone. (C) Investment diversity requirements The requirements of this subparagraph shall not be treated as met with respect to any fund unless— (i) at least 30 percent of the fund’s qualified opportunity zone property is qualified opportunity zone property with respect to an opportunity zone within a county, or local jurisdiction, the population of which is 200,000 or less, (ii) at least 50 percent of the fund’s qualified opportunity zone property consists of interests in partnerships, and stock of corporations, which are— (I) small business concerns owned and controlled by women (within the meaning of section 3(n) of the Small Business Act ( 15 U.S.C. 632(n) (II) small business concerns owned and controlled by socially and economically disadvantaged individuals under section 8(d)(3)(C) of such Act ( 15 U.S.C. 637(d)(3)(C) (iii) at least 40 percent of the fund’s qualified opportunity zone property consists of— (I) stock in corporations, interests in a partnerships, or other property, the value of each of which does not exceed $20 million, and (II) stock in corporations, or interests in partnerships, the price-earnings ratio of each of which is under 5. (D) Affordable housing investment requirements The requirements of this subparagraph shall not be treated as met with respect to any fund unless in the case of any investment in qualified opportunity zone property which consists of a residential property project, at least 20 percent of the units in the project are occupied by individuals whose income is— (i) not more than 30 percent of area median gross income, or (ii) not more than 200 percent of the poverty line (as defined in section 673 of the Community Services Block Grant Act ( 42 U.S.C. 9902 (E) Investment measurement For purposes of this paragraph, percentages of qualified opportunity zone property held by a qualified opportunity fund shall be determined under rules similar to the rules of paragraph (1). (F) Failure to meet requirement In the case of a qualified opportunity fund which fails to meet any of the requirements of this paragraph, subsection (b) shall be applied by substituting the date of such failure for December 31, 2026 . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 2. Controlled-environment agriculture investment requirement for qualified opportunity funds (a) In general Section 1400Z–2(d) (5) Controlled-environment agriculture investment requirement (A) In general A fund shall not be treated as a qualified opportunity fund for purposes of this section unless at least 5 percent of the fund’s qualified opportunity zone property is controlled-environment agriculture property. (B) Controlled-environment agriculture property For purposes of this paragraph, the term controlled-environment agriculture property . (b) Effective date The amendment made by this section shall take effect on January 1, 2023.

Summary: This bill modifies requirements relating to opportunity zone investment (i.e., investment in economically distressed areas) to require its funds to meet specified investment advisory board, diversity, and affordable housing requirements. It also requires that at least 5% of a fund's qualified opportunity zone property is controlled-environment agriculture property.