ily income of the low-income community with 
which the tract is contiguous. 
‘‘(2) LIMITATION.—Not more than 25 percent 
of the population census tracts designated in a State 
as a qualified gigabit opportunity zone may be des-
ignated under paragraph (1). 
‘‘(g) PERIOD FOR WHICH DESIGNATION IS IN EF-
FECT.—A designation as a qualified gigabit opportunity 
zone shall remain in effect for the period beginning on 
the date of the designation and ending at the close of the 
7th calendar year beginning on or after such date of des-
ignation. 
‘‘SEC. 1400W–2. DEFERRAL FOR ELIGIBLE TAXPAYER OF 
CAPITAL GAINS INVESTED IN GIGABIT OP-
PORTUNITY ZONES. 
‘‘(a) IN GENERAL.— 
‘‘(1) EXCLUSION OF GAIN INVESTED IN GIG-
ABIT OPPORTUNITY ZONE PROPERTY.—In the case 
of gain from the sale to, or exchange with, an unre-
lated person of any property held by an eligible tax-
payer, at the election of the eligible taxpayer— 
‘‘(A) gross income for the taxable year 
shall not include so much of such gain as does 
not exceed the aggregate cost of all qualified 
gigabit opportunity zone property acquired by 
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the taxpayer during the 180-day period begin-
ning on the date of such sale or exchange, and 
‘‘(B) the amount of gain excluded by sub-
paragraph (A) shall be included in gross income 
as provided by paragraph (2). 
‘‘(2) DEFERRAL OF GAIN INVESTED IN QUALI-
FIED GIGABIT OPPORTUNITY ZONE PROPERTY.— 
‘‘(A) YEAR
OF
INCLUSION.—Except as 
provided by subparagraph (C), gain to which 
paragraph (1)(B) applies shall be included in 
income in the taxable year in which the quali-
fied gigabit opportunity zone property related to 
such gain is sold or exchanged in the amount 
determined under subparagraph (B). 
‘‘(B) AMOUNT INCLUDIBLE.—The amount 
of gain determined under this clause shall be— 
‘‘(i) 100 percent of such gain in the 
case of the sale or exchange of the quali-
fied gigabit opportunity zone property with 
respect to which gain is deferred under 
paragraph (1) that is held for less than 5 
years, 
‘‘(ii) 90 percent of such gain in the 
case of the sale or exchange of the quali-
fied gigabit opportunity zone property with 
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respect to which gain is deferred under 
paragraph (1) that is held for at least 5 
years but less than 7 years, and 
‘‘(iii) 85 percent of such gain in the 
case of the sale or exchange of the quali-
fied gigabit opportunity zone property with 
respect to which gain is deferred under 
paragraph (1) that is held for at least 7 
years. 
‘‘(3) EXCLUSION OF GAIN ON QUALIFIED GIG-
ABIT OPPORTUNITY ZONE PROPERTY HELD FOR AT 
LEAST 10 YEARS.—Except as provided in paragraph 
(2), in the case of the sale or exchange of qualified 
gigabit opportunity zone property, or an investment 
in a qualified opportunity fund, held for at least 10 
years, gross income for the taxable year shall not in-
clude any gain from the sale or exchange of such 
property or investment. 
‘‘(4) ONE ELECTION PER PROPERTY.—No elec-
tion may be made under paragraph (1) with respect 
to a sale or exchange if an election previously made 
with respect to such sale or exchange is in effect. 
‘‘(b) BASIS RULES RELATING TO QUALIFIED GIG-
ABIT OPPORTUNITY ZONE PROPERTY.— 
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‘‘(1) REDUCED
BY
GAIN
DEFERRED
UNDER 
SUBSECTION (a)(1).—The basis of a qualified gig-
abit opportunity zone property immediately after its 
acquisition under subsection (a) shall be reduced by 
the amount of gain deferred by reason of subsection 
(a)(1)(A) with respect to such property. 
‘‘(2) INCREASE FOR GAIN RECOGNIZED UNDER 
SUBSECTION (a)(2).—The basis of qualified gigabit 
opportunity zone property shall be increased by the 
amount of gain recognized by reason of subsection 
(a)(2) with respect to such property. 
‘‘(3) SUBSEQUENT
INCREASE
IN
BASIS
FOR 
PROPERTY HELD FOR AT LEAST 5 YEARS BUT LESS 
THAN 10 YEARS.—In the case of qualified gigabit op-
portunity zone property held for at least 5 years but 
less than 10 years— 
‘‘(A) PROPERTY HELD FOR 5 YEARS.—For 
qualified gigabit opportunity zone property held 
for at least 5 years, the basis of such property 
shall be increased by an amount equal to 10 
percent of the amount of gain deferred by rea-
son of subsection (a)(1)(A) with respect to such 
property. 
‘‘(B) PROPERTY HELD FOR 7 YEARS.—For 
qualified gigabit opportunity zone property held 
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for at least 7 years, the basis of such property 
shall be increased by an amount equal to 5 per-
cent of the amount of gain deferred by reason 
of subsection (a)(1)(A) with respect to such 
property. 
‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, the term ‘eligible taxpayer’ means any taxpayer who 
has a trade or business a substantial part of which con-
sists of selling broadband internet service to commercial 
customers, residential customers, or both through one or 
a combination of the following technologies: 
‘‘(1) Digital Subscriber Line transmission tech-
nology that transmits data faster over traditional 
copper telephone lines, without regards to the spe-
cific type of Digital Subscriber Line transmission 
technology such as Asymmetrical Digital Subscriber 
Line, Symmetrical Digital Subscriber Line, High 
data rate Digital Subscriber Line, or Very High 
data rate Digital Subscriber Line. 
‘‘(2) Cable Modem transmission technology that 
enables operators to provide broadband using the 
same coaxial cables that deliver pictures and sound 
to televisions. 
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‘‘(3) Fiber optic transmission technology that 
converts electrical signals carrying data to light and 
sends the light through transparent glass fibers. 
‘‘(4) Wireless transmission technology that uti-
lizes a radio link between the customer’s location 
and the service provider’s facility, whether mobile or 
fixed. 
‘‘(5) Satellite transmission technology that pro-
vides broadband links via orbiting satellites. 
‘‘(6) Broadband over powerline transmission 
technology that delivers broadband over the existing 
low- and medium-voltage electric power distribution 
network. 
‘‘(7) Such other technologies as the Secretary, 
in consultation with the Federal Communications 
Commission, may designate by rule as a broadband 
provider technology. 
‘‘(d) QUALIFIED
GIGABIT
OPPORTUNITY
ZONE 
PROPERTY.—For purposes of this section: 
‘‘(1) IN GENERAL.—The term ‘qualified gigabit 
opportunity zone property’ means property which 
is— 
‘‘(A) qualified gigabit opportunity zone 
stock, 
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