I 
116TH CONGRESS 
1ST SESSION H. R. 4999 
To amend the Internal Revenue Code of 1986 to require fairness and diversity 
in opportunity zone investment. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 8, 2019 
Mr. JOHNSON of Georgia (for himself and Mr. RUSH) 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 require 
fairness and diversity in opportunity zone investment. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. OPPORTUNITY ZONE FAIRNESS AND INCLU-
SION. 
(a) IN GENERAL.—Section 1400Z–2(d) of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(4) OPPORTUNITY FUND FAIRNESS AND IN-
CLUSION.— 
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‘‘(A) IN GENERAL.—A fund shall not be 
treated as a qualified opportunity fund for pur-
poses 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 in-
vestment requirements of subparagraph 
(D), and 
‘‘(iv) with respect to each investment 
in an opportunity zone, assesses, and pre-
pares 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 oppor-
tunity zone within which the fund invests in 
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qualified opportunity zone property, an invest-
ment advisory board which— 
‘‘(i) is appointed by the local govern-
ment of the jurisdiction within which the 
zone to which such advisory board relates 
is located, and 
‘‘(ii) advises the fund in directing in-
vestments in the zone for the benefit of the 
zone. 
‘‘(C) INVESTMENT
DIVERSITY
REQUIRE-
MENTS.—The requirements of this subpara-
graph 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 con-
sists of interests in partnerships, and stock 
of corporations, which are— 
‘‘(I) 
small 
business 
concerns 
owned and controlled by women (with-
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in the meaning of section 3(n) of the 
Small 
Business 
Act 
(15 
U.S.C. 
632(n)), or 
‘‘(II) small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals under section 8(d)(3)(C) of such 
Act (15 U.S.C. 637(d)(3)(C)), and 
‘‘(iii) at least 40 percent of the fund’s 
qualified opportunity zone property con-
sists of— 
‘‘(I) stock in corporations, inter-
ests in a partnerships, or other prop-
erty, the value of each of which does 
not exceed $20 million, and 
‘‘(II) stock in corporations, or in-
terests in partnerships, the price-earn-
ings 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 prop-
erty which consists of a residential property 
project, at least 20 percent of the units in the 
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project are occupied by individuals whose in-
come 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)) for a family of the size 
involved. 
‘‘(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 ‘De-
cember 31, 2026’ in paragraph (1)(B) there-
of.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
Æ 
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