Community Development in Opportunity Zones Act of 2020

Bill: 116-hr-7262
Sponsor: full_name: Rep. Meeks, Gregory W. [D-NY-5]
Introduced: 2020-06-18
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Banking and financial institutions regulation

Business investment and capital

Economic development

Income tax deferral

Income tax exclusion
Latest action: action_date: 2020-06-18
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-06-18
action_desc: Introduced in House
text: <p><b>Community Development in Opportunity Zones Act of 2020</b></p> <p>This bill includes within the definition of <i>qualified opportunity zone</i> <i>business </i>any community development financial institution. This allows qualified opportunity funds to invest in such institutions.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7262 IN THE HOUSE OF REPRESENTATIVES June 18, 2020 Mr. Meeks (for himself, Mr. Quigley , Mr. Cleaver , Mr. Green of Texas , Mr. Cárdenas , Ms. Eshoo , Mr. Gallego , and Mr. Crist ) 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 qualified opportunity funds to invest in community development financial institutions.

1. Short title This Act may be cited as the Community Development in Opportunity Zones Act of 2020 . 2. Qualified opportunity fund investments in community development financial institutions (a) In general Section 1400Z–2(d)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (C) Special rule for community development financial institutions The term qualified opportunity zone business shall include any community development financial institution (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 )) if, during substantially all the qualified opportunity fund’s holding period for its investment in such community development financial institution, the average of the aggregate amount of investment, and principal amount of loans, provided by such community development financial institution to qualified opportunity zone businesses (other than community development financial institutions) or residents of qualified opportunity zones is not less than such investment. . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act.