Disaster Opportunity Zones Act

To amend the Internal Revenue Code of 1986 to allow the designation of opportunity zones for population census tracts affected by Hurricane Florence, Hurricane Michael, and the Mendocino, Carr, Camp, Woolsey, and Hill wildfires. 1. Short title This Act may be cited as the Disaster Opportunity Zones Act 2. Additional designations of opportunity zones Section 1400Z–1 (g) Additional designations for certain disaster areas (1) In general Notwithstanding subsection (d), an eligible population census tract may be designated as a qualified opportunity zone. (2) Process for designation An eligible population census tract shall be designated as a qualified opportunity zone in the same manner as described in subsection (b), except that for purposes of applying such subsection to eligible population census tracts, the determination period shall be the 90-day period beginning on the date of the enactment of this subsection (as extended under subsection (b)(2)). (3) Limitation The number of eligible population census tracts that may be designated under this subsection may not exceed the greater of— (A) 25 percent of the eligible population census tracts in the State, or (B) 25. (4) Special rules In applying this subchapter to any qualified opportunity zone designated under this subsection, for purposes of determining— (A) whether any property which would not be qualified opportunity fund business property without regard to this subsection is qualified opportunity fund business property, and (B) whether any corporation or partnership which is not a qualified opportunity fund business without regard to this subsection is a qualified opportunity fund business, subparagraphs (B)(i)(I), (C)(i), and (D)(i)(I) of section 1400Z–2(d)(2) shall each be applied by substituting the incident beginning date of the disaster described in section 1400Z–1(g)(5)(B) with respect to such qualified opportunity zone December 31, 2017 (5) Eligible population census tract For purposes of this subsection— (A) In general The term eligible population census tract (i) is a low-income community, and (ii) is part of a qualified disaster zone. (B) Qualified disaster zone (i) In general The term qualified disaster zone (ii) Hurricane florence disaster area The term Hurricane Florence disaster area (iii) Hurricane michael disaster area The term Hurricane Michael disaster area (iv) Mendocino and carr wildfire disaster area The term Mendocino and Carr wildfire disaster area (v) Camp, woolsey, and hill wildfire disaster area The term Camp, Woolsey, and Hill wildfire disaster area (C) Incident beginning date The term incident beginning date (i) in the case of the Hurricane Florence disaster area, September 7, 2018, (ii) in the case of the Hurricane Michael disaster area, October 7, 2018, (iii) in the case of the Mendocino and Carr wildfire disaster area, July 23, 2018, and (iv) in the case of the Camp, Woolsey, and Hill wildfire disaster area, November 8, 2018. .

Summary: Disaster Opportunity Zones Act This bill allows a certain number of population census tracts comprising a low-income community within a qualified disaster zone to be designated as additional opportunity zones. An opportunity zone is an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Currently, opportunity zones have been designated in parts of all 50 states, the District of Columbia, and five U.S. territories. The bill defines qualified disaster zone as that portion of the Hurricane Florence disaster area; the Hurricane Michael disaster area; the Mendocino and Carr wildfire disaster area; and the Camp, Woolsey, and Hill wildfire disaster area that is determined by the President to warrant federal government assistance.