I 
118TH CONGRESS 
1ST SESSION H. R. 4055 
To amend the Internal Revenue Code of 1986 to exclude interest on loans 
by depository institutions to qualified opportunity zone businesses from 
gross income, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 13, 2023 
Mr. BARR introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
interest on loans by depository institutions to qualified 
opportunity zone businesses from gross income, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Opportunity Zones En-
hancement Act of 2023’’. 
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SEC. 2. EXCLUSION FOR INTEREST ON LOANS TO QUALI-
FIED OPPORTUNITY ZONE BUSINESSES. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139I the following new section: 
‘‘SEC. 139J. INTEREST ON LOANS TO QUALIFIED OPPOR-
TUNITY ZONE BUSINESSES. 
‘‘(a) EXCLUSION.—Gross income shall not include an 
amount equal to so much of the interest received by a de-
pository institution on any loan to a qualified borrower 
as does not exceed the lesser of— 
‘‘(1) the taxpayer’s retained earnings attrib-
utable to the taxable year, or 
‘‘(2) $5,000,000. 
‘‘(b) DEPOSITORY INSTITUTION.—For purposes of 
this section, the term ‘depository institution’ has the 
meaning given such term in section 3 of the Federal De-
posit Insurance Act. 
‘‘(c) QUALIFIED BORROWER.—For purposes of this 
section, the term ‘qualified borrower’ means a borrower 
that at the time of origination of the loan is a qualified 
opportunity zone business (as defined in section 1400Z– 
2(d)). 
‘‘(d) RETAINED EARNINGS.—For purposes of this 
section, the term ‘retained earnings’ means the excess of 
the taxpayer’s earnings and profits (within the meaning 
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of section 316(a)(2)) for the taxable year over the divi-
dends paid by the taxpayer during such taxable year. 
‘‘(e) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2023, the dollar amounts in 
subsections (a)(2) and (e) shall be increased by an 
amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2022’ for 
‘calendar year 2016’ in subparagraph (A)(ii). 
‘‘(2) ROUNDING.—Any amount under para-
graph (1) shall be rounded to the nearest multiple 
of $1,000,000. 
‘‘(f) CONTROLLED GROUP.— 
‘‘(1) IN GENERAL.—In the case of a depository 
institution which is a member of a controlled group 
which includes one or more other depository institu-
tions, such institutions shall for purposes of applying 
the dollar amounts in subsections (a) and (b) be 
treated as one depository institution. 
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘controlled group’ means any group 
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treated as a single employer under subsection (b), 
(c), (m), or (o) of section 414. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section. 
‘‘(h) COORDINATION WITH SECTION 265.—Loans 
from a depository institution to a qualified borrower shall 
be treated as obligations described in section 265(a)(2) the 
interest on which is wholly exempt from the taxes imposed 
by this subtitle.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such part III is amended by inserting after the item 
relating to section 139I the following new item: 
‘‘Sec. 139J. Interest on loans to qualified opportunity zone businesses.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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