I 
117TH CONGRESS 
2D SESSION 
H. R. 7467 
To amend the Internal Revenue Code of 1986 to modify the rules relating 
to qualified opportunity zones, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 7, 2022 
Mr. KIND (for himself, Mr. KELLY of Pennsylvania, Mr. KILDEE, Ms. SE-
WELL, and Mrs. WALORSKI) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the rules relating to qualified opportunity zones, 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 Im-
provement, Transparency, and Extension Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The 8,764 population census tracts des-
ignated as qualified opportunity zones under section 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
1400Z–1 of the Internal Revenue Code of 1986 span 
across all 50 States, the District of Columbia, and 
5 Territories and overwhelmingly represent commu-
nities that have been economically left behind as the 
American economy has surged forward. 
(2) The average poverty rate of qualified oppor-
tunity zone residents is 26.4 percent. 
(3) Fifty-four percent of the country’s pockets 
of concentrated persistent poverty—meaning census 
tracts in which at least 40 percent of the population 
has lived in poverty since at least 1980—are quali-
fied opportunity zones. 
(4) More adults in qualified opportunity zones 
lack a high school diploma than have a four-year col-
lege degree. 
(5) The Investing in Opportunity Act, which 
originally proposed opportunity zones, originally in-
corporated reporting requirements to evaluate the 
impact the incentive will have on designated commu-
nities and it is critical that Congress act to reinstate 
reporting requirements as soon as possible. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
TITLE I—MODIFICATION OF POP-
ULATION 
CENSUS 
TRACTS 
DESIGNATED AS QUALIFIED 
OPPORTUNITY ZONES 
SEC. 101. MODIFICATION OF POPULATION CENSUS TRACTS 
DESIGNATED AS QUALIFIED OPPORTUNITY 
ZONES. 
Section 1400Z–1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subsection: 
‘‘(g) DISQUALIFICATION OF CERTAIN POPULATION 
CENSUS TRACTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (5), any disqualified census tract shall not be 
treated as a qualified opportunity zone for any pe-
riod after the date that is 30 days after the date on 
which the Secretary publishes the final list of dis-
qualified census tracts under paragraph (4)(B). 
‘‘(2) REPLACEMENT ZONES.— 
‘‘(A) IN GENERAL.—The chief executive of-
ficer of a State may nominate additional popu-
lation census tracts to replace any population 
census tract the designation of which as a 
qualified opportunity zone was terminated by 
reason of paragraph (1). Except as otherwise 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
provided in this paragraph, the rules of sub-
sections (b), (c), (d), and (f) shall apply to any 
population census tract nominated under this 
paragraph. 
‘‘(B) CONSULTATION.—No population cen-
sus tract nominated under subparagraph (A) 
may be designated as a qualified opportunity 
zone unless the chief executive officer of the 
State certifies in writing to the Secretary that 
the chief executive officer has consulted with 
the chief executive officer (or the equivalent) of 
each local jurisdiction in which the population 
census tract is located. 
‘‘(C) SPECIAL
RULES.—For purposes of 
this subchapter— 
‘‘(i) any population census tract which 
is a disqualified census tract (as defined in 
paragraph (3) without regard to subpara-
graph (A)(i) thereof) may not be nomi-
nated as a qualified opportunity zone 
under this paragraph, 
‘‘(ii) the determination period with re-
spect to a nomination under subparagraph 
(A) shall be the 45-day period beginning 
on the date on which the Secretary pub-
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
lishes the final list of disqualified census 
tracts under paragraph (4)(B), as ex-
tended under subsection (b)(2), and 
‘‘(iii) the period for which any such 
designation is in effect shall be the period 
beginning on the date such designation 
takes effect and ending on the last day of 
the 10th calendar year beginning on or 
after the designation date as a qualified 
opportunity zone for the population census 
tract which it is replacing as such a zone 
by reason of the termination under para-
graph (1). 
‘‘(D) REGULATIONS AND GUIDANCE.—The 
Secretary shall prescribe such regulations or 
other guidance as may be necessary or appro-
priate to carry out the purposes of this para-
graph. 
‘‘(3) DISQUALIFIED CENSUS TRACT.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘disqualified 
census tract’ means any population census tract 
which— 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(i) was designated as a qualified op-
portunity zone before the date of the en-
actment of this subsection, and 
‘‘(ii) is described in subparagraph (B) 
or (C). 
‘‘(B) 
HIGH
MEDIAN
FAMILY
INCOME 
TRACTS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), a population 
census tract is described in this subpara-
graph if the median family income for such 
tract exceeds 130 percent of the national 
median family income. 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply if the poverty rate of such popu-
lation census tract (excluding students en-
rolled in an institution of higher education 
(as defined in section 101 of the Higher 
Education Act of 1965)) is equal to or 
greater than 30 percent. 
‘‘(iii) REQUEST TO RETAIN DESIGNA-
TION FOR CERTAIN POPULATION CENSUS 
TRACTS.—Clause (i) shall not apply if the 
Secretary, upon a request of the chief exec-
utive officer of the State made not later 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
than 60 days after the date the Secretary 
publishes the list described in paragraph 
(4)(A), determines that— 
‘‘(I) the designation of such pop-
ulation census tract was consistent 
with the purposes of this subchapter, 
or 
‘‘(II) the median family income 
for the population census tract does 
not exceed 130 percent of the national 
median family income. 
‘‘(C) ELECTION TO INCLUDE ADDITIONAL 
POPULATION CENSUS TRACTS.— 
‘‘(i) IN GENERAL.—A population cen-
sus tract is described in this subparagraph 
if the Secretary, upon the request of the 
chief executive officer of the State sub-
mitted not later than 60 days after the 
date the Secretary publishes the list de-
scribed in paragraph (4)(A), determines 
that the continued designation of such pop-
ulation census tract as a qualified oppor-
tunity zone is not consistent with the pur-
poses of this subchapter. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(ii) REGULATIONS AND GUIDANCE.— 
Not later than 12 months after the date of 
the enactment of this subsection, the Sec-
retary shall issue regulations or guidance 
with respect to the criteria to be used for 
making a determination by the Secretary 
under clause (i). 
‘‘(4) IDENTIFICATION
AND
PUBLICATION
OF 
DISQUALIFIED CENSUS TRACTS.— 
‘‘(A) INITIAL
IDENTIFICATION.—As soon 
as practical, but not later than 12 months after 
the date of the enactment of this subsection, 
the Secretary shall make public— 
‘‘(i) a list of population census tracts 
described in paragraph (3)(B) (determined 
without regard to clause (iii) thereof), and 
‘‘(ii) a list of population census tracts 
which are low-income communities and 
were not designated as a qualified oppor-
tunity zone before the date of enactment of 
this subsection. 
‘‘(B) FINAL LIST OF DISQUALIFIED CEN-
SUS TRACTS.—Not later than 105 days after 
the date the Secretary publishes the list de-
scribed in subparagraph (A), the Secretary shall 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
make public a final list of disqualified census 
tracts. 
‘‘(5) RULES FOR QUALIFIED PREEXISTING IN-
VESTMENTS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subchapter, section 1400Z–2 shall be applied 
without regard to paragraph (1) with respect to 
any qualified preexisting trade or business. 
‘‘(B) QUALIFIED PREEXISTING TRADE OR 
BUSINESS.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied preexisting trade or business’ means 
any trade or business of a qualified oppor-
tunity zone fund or qualified opportunity 
zone business which meets the require-
ments of clauses (ii) and (iii) of section 
1400Z–2(d)(3)(A) and which— 
‘‘(I) before the date of the enact-
ment of this subsection, filed a reg-
istration statement under the Securi-
ties Act of 1933 (15 U.S.C. 77a et 
seq.) or prepared any comparable of-
fering memorandum or similar disclo-
sure document provided in reliance on 
section 230.506 of title 17, Code of 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(ii) TRADE OR BUSINESS.—The term 
‘trade or business’ includes any activity in-
tended to qualify as a trade or business 
within the meaning of section 162. 
‘‘(C) REGULATIONS AND GUIDANCE.—The 
Secretary shall prescribe such regulations or 
guidance as may be necessary or appropriate to 
carry out the purposes of this paragraph, in-
cluding guidance to prevent speculative invest-
ment solely for the purpose of falling within the 
definition of a qualified preexisting trade or 
business. 
‘‘(6) DETERMINATION OF POPULATION CENSUS 
TRACT DATA.—For purposes of applying this sub-
section, in determining whether a population census 
tract meets any qualification with respect to poverty 
rate or any aspect of median income, such deter-
mination shall be made using the most recent census 
data that has been published by the Bureau of the 
Census as of the date of enactment of this sub-
section.’’. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
SEC. 102. CERTAIN FORMER INDUSTRIAL TRACTS PER-
MITTED TO BE DESIGNATED AS OPPOR-
TUNITY ZONES. 
Section 1400Z–1 of the Internal Revenue Code of 
1986, as amended by section 101, is amended by adding 
at the end the following new subsection: 
‘‘(h) SPECIAL
RULE
FOR
FORMER
INDUSTRIAL 
TRACTS CONTIGUOUS
TO DESIGNATED OPPORTUNITY 
ZONES.— 
‘‘(1) IN GENERAL.—For purposes of this chap-
ter, the term ‘qualified opportunity zone’ means an 
population census tract which is described in para-
graph (2) and designated as a qualified opportunity 
zone under this subsection. 
‘‘(2) 
POPULATION
CENSUS
TRACT
DE-
SCRIBED.—A population census tract is described in 
this subparagraph if— 
‘‘(A) the tract— 
‘‘(i) has a population of zero, 
‘‘(ii) was previously used for industrial 
purposes and is a brownfield industrial 
site, and 
‘‘(iii) is contiguous, including by 
water, to a population census tract on at 
least 1 side that has been designated as a 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
qualified opportunity zone under this sec-
tion, or 
‘‘(B) the tract was merged, as a result of 
the 2020 decennial census, into a census tract 
described in subparagraph (A)(iii) and met all 
requirements described in subparagraph (A). 
‘‘(3) DESIGNATION.—For purposes of para-
graph (1), a population census tract that is de-
scribed in paragraph (2) is designated as a qualified 
opportunity zone if— 
‘‘(A) not later than 30 days after the date 
of the enactment of this subsection, the chief 
executive officer of the State in which the tract 
is located— 
‘‘(i) nominates the tract for designa-
tion as a qualified opportunity zone, and 
‘‘(ii) notifies the Secretary in writing 
of such nomination, and 
‘‘(B) not later than 30 days after receiving 
the notification under subparagraph (A)(ii), the 
Secretary certifies such nomination and des-
ignates such tract as a qualified opportunity 
zone. 
‘‘(4) DETERMINATION OF CENSUS TRACT IN-
FORMATION.—For purposes of this subsection, the 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
boundaries and population of a census tract shall be 
determined based on United States Census Bureau 
data for the 2010 decennial census. 
‘‘(5) NUMBER OF DESIGNATIONS.—Population 
census tracts designated as a qualified opportunity 
zone under this subsection shall not be taken into 
account for purposes of subsection (d). 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) BROWNFIELD
INDUSTRIAL
SITE.— 
The term ‘brownfield industrial site’ means a 
population census tract that includes real prop-
erty the expansion, redevelopment, or reuse of 
which may be complicated by the presence or 
potential presence of a hazardous substance or 
pollutant or contaminant, including real prop-
erty covered by a prospective purchaser agree-
ment or similar agreement entered into by the 
Environmental Protection Agency or the appro-
priate State authority. 
‘‘(B) HAZARDOUS SUBSTANCE.—The term 
‘hazardous substance’ means— 
‘‘(i) a hazardous substance as defined 
in section 101(14) of the Comprehensive 
Environmental Response, Compensation, 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
and Liability Act of 1980 (42 U.S.C. 
9601(14)), or 
‘‘(ii) petroleum or a petroleum prod-
uct. 
‘‘(C) POLLUTANT OR CONTAMINANT.—The 
term ‘pollutant or contaminant’ has the mean-
ing given such term in section 101(33) of such 
Act.’’. 
TITLE II—INFORMATION 
REPORTING REQUIREMENTS 
SEC. 201. INFORMATION REPORTING ON QUALIFIED OP-
PORTUNITY FUNDS. 
(a) IN GENERAL.— 
(1) FILING
REQUIREMENTS
FOR
FUNDS
AND 
INVESTORS.—Subpart A of part III of subchapter A 
of chapter 61 of the Internal Revenue Code of 1986 
is amended by inserting after section 6039J the fol-
lowing new sections: 
‘‘SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OP-
PORTUNITY FUNDS. 
‘‘(a) IN GENERAL.—Every qualified opportunity fund 
shall file an annual return (at such time and in such man-
ner as the Secretary may prescribe) containing the infor-
mation described in subsection (b). 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(b) INFORMATION FROM QUALIFIED OPPORTUNITY 
FUNDS.—The information described in this subsection 
is— 
‘‘(1) the name, address, and taxpayer identifica-
tion number of the qualified opportunity fund, 
‘‘(2) whether the qualified opportunity fund is 
organized as a corporation or a partnership, 
‘‘(3) the value of the total assets held by the 
qualified opportunity fund as of each date described 
in section 1400Z–2(d)(1), 
‘‘(4) the value of all qualified opportunity zone 
property held by the qualified opportunity fund on 
each such date, 
‘‘(5) with respect to each investment held by 
the qualified opportunity fund in qualified oppor-
tunity zone stock or a qualified opportunity zone 
partnership interest— 
‘‘(A) the name, address, and taxpayer 
identification number of the corporation in 
which such stock is held or the partnership in 
which such interest is held, as the case may be, 
‘‘(B) each North American Industry Clas-
sification Code that applies to the trades or 
businesses conducted by such corporation or 
partnership, 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(C) the population census tracts in which 
the qualified opportunity zone business property 
of such corporation or partnership is located, 
‘‘(D) the amount of the investment in such 
stock or partnership interest as of each date de-
scribed in section 1400Z–2(d)(1), 
‘‘(E) the value of tangible property held by 
such corporation or partnership on each such 
date which is owned by such corporation or 
partnership, 
‘‘(F) the value of tangible property held by 
such corporation or partnership on each such 
date which is leased by such corporation or 
partnership, 
‘‘(G) the approximate number of residen-
tial units (if any) for any real property held by 
such corporation or partnership, and 
‘‘(H) the approximate average monthly 
number of full-time equivalent employees of 
such corporation or partnership for the year 
(within numerical ranges identified by the Sec-
retary) or such other indication of the employ-
ment impact of such corporation or partnership 
as determined appropriate by the Secretary, 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(8) with respect to each person who disposed 
of an investment in the qualified opportunity fund 
during the year— 
‘‘(A) the name and taxpayer identification 
number of such person, 
‘‘(B) the date or dates on which the invest-
ment disposed was acquired, and 
‘‘(C) the date or dates on which any such 
investment was disposed and the amount of the 
investment disposed, and 
‘‘(9) such other information as the Secretary 
may require. 
‘‘(c) STATEMENT REQUIRED TO BE FURNISHED TO 
INVESTORS.—Every person required to make a return 
under subsection (a) shall furnish to each person whose 
name is required to be set forth in such return by reason 
of subsection (b)(9) a written statement showing— 
‘‘(1) the name, address and phone number of 
the information contact of the person required to 
make such return, and 
‘‘(2) the information required to be shown on 
such return by reason of subsection (b)(9) with re-
spect to such person. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(1) IN GENERAL.—Any term used in this sec-
tion which is also used in subchapter Z of chapter 
1 shall have the meaning given such term under 
such subchapter. 
‘‘(2) FULL-TIME
EQUIVALENT
EMPLOYEES.— 
The term ‘full-time equivalent employees’ means, 
with respect to any month, the sum of— 
‘‘(A) the number of full-time employees (as 
defined in section 4980H(c)(4)) for the month, 
plus 
‘‘(B) the number of employees determined 
(under rules similar to the rules of section 
4980H(c)(2)(E)) by dividing the aggregate 
number of hours of service of employees who 
are not full-time employees for the month by 
120. 
‘‘SEC. 6039L. INFORMATION ON PERSONS INVESTING IN 
QUALIFIED OPPORTUNITY FUNDS. 
‘‘(a) IN GENERAL.—Every taxpayer who makes an 
investment in a qualified opportunity fund shall provide 
an annual statement (at such time and in such manner 
as the Secretary may prescribe) containing the informa-
tion described in subsection (b) with respect to each such 
investment. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(b) INFORMATION FROM INVESTORS.—The infor-
mation described in this subsection is— 
‘‘(1) the name, address, and taxpayer identifica-
tion number of the taxpayer, 
‘‘(2) the name and taxpayer identification num-
ber of the qualified opportunity fund in which the 
investment was made, 
‘‘(3) a description of such investment, 
‘‘(4) the date such investment was made, 
‘‘(5) the amount of short-term and long-term 
capital gains for which an election was made under 
section 1400Z–2(a)(1) for such investment, 
‘‘(6) in the case of any disposition of any in-
vestment in a qualified opportunity fund during the 
taxable year— 
‘‘(A) a description of the investment dis-
posed, 
‘‘(B) the date of the disposition, and 
‘‘(C) the amount of any previously deferred 
short-term and long-term capital gain included 
in income as a result of such disposition, and 
‘‘(7) such other information as the Secretary 
may require. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(c) DEFINITIONS.—Any term used in this section 
which is also used in subchapter Z of chapter 1 shall have 
the meaning given such term under such subchapter. 
‘‘SEC. 6039M. INFORMATION REQUIRED FROM CERTAIN 
QUALIFIED 
OPPORTUNITY 
ZONE 
BUSI-
NESSES. 
‘‘(a) IN GENERAL.—Every applicable qualified oppor-
tunity zone business shall furnish to the qualified oppor-
tunity fund described in subsection (b) a written state-
ment in such manner and setting forth such information 
as the Secretary may by regulations prescribe for purposes 
of enabling such qualified opportunity fund to meet the 
requirements of section 6039(b)(5). 
‘‘(b) APPLICABLE QUALIFIED OPPORTUNITY ZONE 
BUSINESS.—For purposes of subsection (a), the term ‘ap-
plicable qualified opportunity zone business’ means any 
qualified opportunity zone business (as defined in section 
1400Z–2(d)(3))— 
‘‘(1) which is a trade or business of a qualified 
opportunity fund, 
‘‘(2) in which a qualified opportunity fund holds 
qualified opportunity zone stock, or 
‘‘(3) in which a qualified opportunity fund holds 
a qualified opportunity zone partnership interest. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(c) OTHER TERMS.—Any term used in this section 
which is also used in subchapter Z of chapter 1 shall have 
the meaning given such term under such subchapter.’’. 
(2) PENALTIES.— 
(A) IN GENERAL.—Part II of subchapter 
B of chapter 68 of the Internal Revenue Code 
of 1986 is amended by inserting after section 
6725 the following new section: 
‘‘SEC. 6726. FAILURE TO COMPLY WITH INFORMATION RE-
PORTING 
REQUIREMENTS 
RELATING 
TO 
QUALIFIED OPPORTUNITY FUNDS. 
‘‘(a) INFORMATION RETURNS BY QUALIFIED OPPOR-
TUNITY FUNDS.— 
‘‘(1) IN GENERAL.—In the case of any person 
required to file a return under section 6039K fails 
to file a complete and correct return under such sec-
tion in the time and in the manner prescribed there-
for, such person shall pay a penalty of $500 for each 
day during which such failure continues. 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—The maximum penalty 
under this subsection on failures with respect to 
any 1 return shall not exceed $10,000. 
‘‘(B) LARGE
QUALIFIED
OPPORTUNITY 
FUNDS.—In the case of any failure described in 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
paragraph (1) with respect to a fund the gross 
assets of which (determined on the last day of 
the taxable year) are in excess of $10,000,000, 
subparagraph (A) shall be applied by sub-
stituting ‘$50,000’ for ‘$10,000’. 
‘‘(3) PENALTY IN CASES OF INTENTIONAL DIS-
REGARD.—If a failure described in paragraph (1) is 
due to intentional disregard, then— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘$2,500’ for ‘$500’, 
‘‘(B) paragraph (2)(A) shall be applied by 
substituting ‘$50,000’ for ‘$10,000’, and 
‘‘(C) paragraph (2)(B) shall be applied by 
substituting ‘$250,000’ for ‘$50,000’. 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
failure relating to a return required to be filed 
in a calendar year beginning after 2023, each 
of the dollar amounts in paragraphs (1), (2), 
and (3) shall be increased by an amount equal 
to such dollar amount multiplied by the cost-of- 
living adjustment determined under section 
1(f)(3) for the calendar year determined by 
substituting ‘calendar year 2022’ for ‘calendar 
year 2016’ in subparagraph (A)(ii) thereof. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(B) ROUNDING.— 
‘‘(i) IN GENERAL.—If the $500 dollar 
amount in paragraphs (1) and (3)(A) or 
the $2,500 amount in paragraph (3)(A), 
after being increased under subparagraph 
(A), is not a multiple of $10, such dollar 
amount shall be rounded to the next lowest 
multiple of $10. 
‘‘(ii) 
ASSET
THRESHOLD.—If 
the 
$10,000,000 dollar amount in paragraph 
(2)(B), after being increased under sub-
paragraph (A), is not a multiple of 
$10,000, such dollar amount shall be 
rounded to the next lowest multiple of 
$10,000. 
‘‘(iii) OTHER DOLLAR AMOUNTS.—If 
any dollar amount in paragraph (2) or (3) 
(other than any amount to which clause (i) 
or (ii) applies), after being increased under 
subparagraph (A), is not a multiple of 
$1,000, such dollar amount shall be round-
ed to the next lowest multiple of $1,000. 
‘‘(b) STATEMENTS BY INVESTORS.— 
‘‘(1) IN GENERAL.—If— 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(4) PENALTY IN CASES OF INTENTIONAL DIS-
REGARD.—If one or more failures described in para-
graph (1)(B) are due to intentional disregard of the 
filing requirement (or the correct information report-
ing requirement), then, with respect to each such 
failure— 
‘‘(A) paragraphs (2) and (3) shall not 
apply, and 
‘‘(B) the amount of the penalty determined 
under paragraph (1) shall be $25,000. 
‘‘(5) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
failure relating to a statement required to be 
filed in a calendar year beginning after 2023, 
each of the dollar amounts in paragraphs (1), 
(2), and (4) shall be increased by an amount 
equal to such dollar amount multiplied by the 
cost-of-living adjustment determined under sec-
tion 1(f)(3) for the calendar year determined by 
substituting ‘calendar year 2022’ for ‘calendar 
year 2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—The amount of any in-
crease under subparagraph (A) shall be round-
ed to the nearest multiple of $100 ($10 in the 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
case of any increase in the amount under para-
graph (2)).’’. 
(B) INFORMATION REQUIRED TO BE SENT 
TO OTHER TAXPAYERS.—Section 6724(d)(2) of 
such Code is amended— 
(i) by striking ‘‘or’’ at the end of sub-
paragraph (II), 
(ii) by striking the period at the end 
of the first subparagraph (JJ) (relating to 
section 6226) and inserting a comma, 
(iii) by redesignating the second sub-
paragraph (JJ) (relating to section 6050Y) 
as subparagraph (KK), 
(iv) by striking the period at the end 
of subparagraph (KK) (as redesignated by 
clause (iii)) and inserting a comma, and 
(v) by inserting after subparagraph 
(KK) (as so redesignated) the following 
new subparagraphs: 
‘‘(LL) section 6039K(c) (relating to dis-
position of qualified opportunity fund invest-
ments), or 
‘‘(MM) section 6039M (relating to infor-
mation required from certain qualified oppor-
tunity zone businesses).’’. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
(3) ELECTRONIC FILING.—Section 6011(e) of 
such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(8) QUALIFIED
OPPORTUNITY
FUNDS.—Not-
withstanding paragraphs (1) and (2), any return 
filed by a qualified opportunity fund shall be filed on 
magnetic media or other machine-readable form.’’. 
(4) CLERICAL AMENDMENTS.— 
(A) The table of sections for subpart A of 
part III of subchapter A of chapter 61 of such 
Code is amended by inserting after the item re-
lating to section 6039J the following new items: 
‘‘Sec. 6039K. Returns with respect to qualified opportunity funds. 
‘‘Sec. 6039L. Information on persons investing in qualified opportunity funds. 
‘‘Sec. 6039M. Information required from certain qualified opportunity zone 
businesses.’’. 
(B) The table of sections for part II of 
subchapter B of chapter 68 of such Code is 
amended by inserting after the item relating to 
section 6725 the following new item: 
‘‘Sec. 6726. Failure to comply with information reporting requirements relating 
to qualified opportunity funds.’’. 
(5) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(b) REPORTING OF DATA ON OPPORTUNITY ZONE 
TAX INCENTIVES.— 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
(1) IN GENERAL.—As soon as practical after 
the date of the enactment of this Act, and annually 
thereafter, the Secretary of the Treasury, or the 
Secretary’s delegate (referred to in this section as 
the ‘‘Secretary’’), in consultation with the Director 
of the Bureau of the Census and such other agencies 
as the Secretary determines appropriate, shall make 
publicly available a report on qualified opportunity 
funds. 
(2) INFORMATION INCLUDED.—The report re-
quired under paragraph (1) shall include, to the ex-
tent available, the following information: 
(A) The number of qualified opportunity 
funds. 
(B) The aggregate dollar amount of assets 
held in qualified opportunity funds. 
(C) The aggregate dollar amount of invest-
ments made by qualified opportunity funds in 
qualified opportunity fund property across each 
industry class under the North American Indus-
try Classification Code. 
(D) The percentage of population census 
tracts designated as qualified opportunity zones 
that have received qualified opportunity fund 
investments. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
(E) For each population census tract des-
ignated as a qualified opportunity zone, the ap-
proximate average monthly number of full-time 
equivalent employees of the qualified oppor-
tunity zone businesses in such qualified oppor-
tunity zone for the preceding 12-month period 
(within numerical ranges identified by the Sec-
retary) or such other indication of the employ-
ment impact of such qualified opportunity fund 
businesses as determined appropriate by the 
Secretary. 
(F) The percentage of the total amount of 
investments made by qualified opportunity 
funds in— 
(i) qualified opportunity zone property 
which is real property; and 
(ii) other qualified opportunity zone 
property. 
(G) For each population census tract, the 
aggregate approximate number of residential 
units resulting from investments made by quali-
fied opportunity funds in real property. 
(H) The aggregate dollar amount of in-
vestments made by qualified opportunity funds 
in each population census tract. 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS
(3) ADDITIONAL INFORMATION.— 
(A) IN GENERAL.—Beginning with the re-
port submitted under paragraph (1) for the 6th 
year after the date of the enactment of this Act, 
the Secretary shall include in such report the 
impacts and outcomes of a designation of a 
population census tract as a qualified oppor-
tunity zone as measured by economic indicators, 
such as job creation, poverty reduction, new 
business starts, and other metrics as deter-
mined by the Secretary. 
(B) SEMI-DECENNIAL INFORMATION.— 
(i) IN GENERAL.—In the case of any 
report submitted under paragraph (1) in 
the 6th year or the 11th year after the 
date of the enactment of this Act, the Sec-
retary shall include the following informa-
tion: 
(I) For population census tracts 
designated as a qualified opportunity 
zone, a comparison (based on aggre-
gate information) of the factors listed 
in clause (iii) between the 5-year pe-
riod ending on the date of the enact-
ment of Public Law 115–97 and the 
VerDate Sep 11 2014 
00:39 Apr 12, 2022
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H7467.IH
H7467
pbinns on DSKJLVW7X2PROD with BILLS