I 
114TH CONGRESS 
2D SESSION 
H. R. 5082 
To amend the Internal Revenue Code of 1986 to provide for the deferral 
of inclusion in gross income for capital gains reinvested in economically 
distressed zones. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 27, 2016 
Mr. TIBERI (for himself, Mr. KIND, Mr. BOUSTANY, Mr. YOUNG of Indiana, 
Mr. REED, Mr. DOLD, Mr. YODER, Mr. CURBELO of Florida, Mr. ROS-
KAM, Mr. BLUMENAUER, Mr. KILMER, Mr. POLIS, Mr. SMITH of Mis-
souri, Ms. DELBENE, Mr. LARSEN of Washington, Ms. SEWELL of Ala-
bama, Mr. MEEHAN, Mr. NUNES, Mr. JOYCE, Mrs. TORRES, Mr. UPTON, 
and Mr. LARSON of Connecticut) 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 provide 
for the deferral of inclusion in gross income for capital 
gains reinvested in economically distressed zones. 
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 ‘‘Investing in Oppor-
tunity Act’’. 
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SEC. 2. OPPORTUNITY ZONES. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
‘‘Subchapter Z—Opportunity Zones 
‘‘Sec. 1400Z–1. Designation. 
‘‘Sec. 1400Z–2. Temporary capital gains deferral. 
‘‘SEC. 1400Z–1. DESIGNATION. 
‘‘(a) QUALIFIED OPPORTUNITY ZONE DEFINED.— 
For the purposes of this subchapter, the term ‘qualified 
opportunity zone’ means a population census tract that 
is a low-income community that is designated as a quali-
fied opportunity zone. 
‘‘(b) DESIGNATION.— 
‘‘(1) GOVERNOR.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), a population census tract that is a 
low-income community is designated as a quali-
fied opportunity zone if— 
‘‘(i) not later than the end of the de-
termination period, the governor of the 
State in which the tract is located— 
‘‘(I) nominates the tract for des-
ignation as a qualified opportunity 
zone, and 
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‘‘(II) notifies the Secretary in 
writing of such nomination, and 
‘‘(ii) the Secretary certifies such nomi-
nation and designates such tract as a 
qualified opportunity zone before the end 
of the consideration period. 
‘‘(B) EXTENSION
OF
PERIODS.—A gov-
ernor may request that the Secretary extend ei-
ther the determination or consideration period, 
or both (determined without regard to this sub-
paragraph), for an additional 30 days. 
‘‘(C) DEEMED
DESIGNATION
IF
SEC-
RETARY FAILS TO ACT.—Unless the tracts are 
ineligible for designation, if the Secretary de-
clines in writing to make such certification and 
designation or fails to act before the end of the 
consideration period, such nomination shall be 
deemed to be certified and designated, effective 
on the day after the last day of the consider-
ation period. 
‘‘(2) SECRETARY.—If a governor fails to make 
the nominations and notifications by the end of the 
periods referred to in paragraphs (1)(A) and (1)(B), 
the Secretary shall designate and certify population 
census tracts that are low-income communities as 
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qualified opportunity zones, as permitted by sub-
section (e). 
‘‘(c) OTHER DEFINITIONS.—For purposes of this 
subsection— 
‘‘(1) LOW-INCOME
COMMUNITIES.—The term 
‘low-income community’ has the same meaning as 
when used in section 45D(e). 
‘‘(2) DEFINITION OF PERIODS.— 
‘‘(A) CONSIDERATION PERIOD.—The term 
‘consideration period’ means the 30-day period 
beginning on the date on which the Secretary 
receives 
notice 
under 
subsection 
(b)(1)(A)(i)(II), as extended under subsection 
(b)(1)(B). 
‘‘(B) DETERMINATION PERIOD.—The term 
‘determination period’ means the 90-day period 
beginning on the date of the enactment of the 
Investing in Opportunity Act, as extended 
under subsection (b)(1)(B). 
‘‘(d) GUIDANCE FOR OPPORTUNITY ZONE NOMINA-
TIONS.—When considering the nomination of qualified op-
portunity zones, governors should strive for the creation 
of qualified opportunity zones that are geographically con-
centrated and contiguous clusters of population census 
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tracts and should give particular consideration to areas 
that— 
‘‘(1) are currently the focus of mutually rein-
forcing State, local, or private economic development 
initiatives to attract investment and foster startup 
activity, 
‘‘(2) have demonstrated success in geographi-
cally targeted development programs, such as prom-
ise zones, new market tax credit, empowerment 
zones, and renewal communities, and 
‘‘(3) have recently experienced significant lay-
offs due to business closures or relocations. 
‘‘(e) NUMBER OF DESIGNATIONS.— 
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), the number of population census 
tracts in a State that may be designated as qualified 
opportunity zones under this section may not exceed 
25 percent of the number of low-income communities 
in the State. 
‘‘(2) EXCEPTION.—If the number of low-income 
communities in a State is less than 100, then a total 
of 25 of such tracts may be designated as qualified 
opportunity zones. 
‘‘(f) DESIGNATION OF TRACTS CONTIGUOUS WITH 
LOW-INCOME COMMUNITIES.— 
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