Title: Disaster Recovery and Opportunity Act of 2018
Policy area: Taxation

Summary:
Disaster Recovery and Opportunity Act of 2018
This bill amends the Internal Revenue Code to allow the chief executive officer (e.g., governor) of a state to designate certain population census tracts in areas related to federally declared disasters as opportunity zones. This makes investments in the areas eligible for various tax incentives.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7242 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7242

   To amend the Internal Revenue Code of 1986 to allow certain areas 
 affected by certain Federally declared disasters to be designated as 
                           opportunity zones.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 10, 2018

 Mr. Meadows 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 allow certain areas 
 affected by certain Federally declared disasters to be designated as 
                           opportunity zones.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Recovery and Opportunity 
Act of 2018''.

SEC. 2. TREATMENT AS OPPORTUNITY ZONES.

    (a) In General.--Section 1400Z-1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subsection:
    ``(g) Certain Disaster Zones.--
            ``(1) Designation.--With respect to a Federally declared 
        disaster, the chief executive officer of a State may designate 
        under this paragraph not more than 5 percent of the applicable 
        disaster tracts in such State with respect to such disaster.
            ``(2) No effect on limitation on number of designations.--
        An applicable disaster tract designated under paragraph (1) 
        shall not be taken into account in determining the limitation 
        under subsection (d).
            ``(3) Applicable disaster tract.--The term `applicable 
        disaster tract' means, with respect to a Federally declared 
        disaster, a population census tract in the disaster area 
        related to such disaster.
            ``(4) Federally declared disaster; disaster area.--In this 
        subsection, the term `Federally declared disaster' and the term 
        `disaster area' have the meaning given such terms in section 
        165(i).
            ``(5) Applicable start date.--
                    ``(A) Qualified opportunity fund businesses and 
                property.--In the case of an applicable disaster tract 
                designated under paragraph (1), subparagraphs 
                (B)(i)(I), (C)(i), and (D)(i)(I) of section 1400Z-
                2(d)(2) shall each be applied by substituting `the 
                applicable start date' for `December 31, 2017'.
                    ``(B) Extension of determination period.--In the 
                case of an applicable disaster tract designated under 
                paragraph (1), section (c)(2)(B) shall be applied by 
                substituting `the applicable start date' for `the date 
                of the enactment of the Tax Cuts and Jobs Act'.
                    ``(C) Applicable start date.--The term `applicable 
                start date' means, with respect to a disaster area, the 
                earliest incident date specified in the declaration to 
                which such area relates.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to Federally declared disasters declared after the 
date of the enactment of this Act.
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