Growth and Opportunities Act of 2021

Bill: 117-hr-4608
Sponsor: full_name: Rep. Steel, Michelle [R-CA-48]
Introduced: 2021-07-21
Policy area: Taxation
Subjects: Business investment and capital

Census and government statistics

Economic development

Housing and community development funding

Income tax deferral

Income tax exclusion
Latest action: action_date: 2021-07-21
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-07-21
action_desc: Introduced in House
text: <p><strong>Growth and Opportunities Act of 2021</strong></p> <p>This bill permits qualified opportunity zones to be designated every 10 years. A<em> qualified opportunity zone</em> is an economically distressed or low-income area in which tax incentives are available to promote investment. Under current law, the existing zone designations expire after 10 years, and no additional designations are allowed.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 4608 IN THE HOUSE OF REPRESENTATIVES July 21, 2021 Mrs. Steel (for herself, Ms. Salazar , Mr. Owens , and Mr. Gimenez ) 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 designation of qualified opportunity zones every 10 years.

1. Short title This Act may be cited as the Growth and Opportunities Act of 2021 . 2. Designation of qualified opportunity zones every 10 years (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) Designation of zones every 10 years (1) Second round of designations Concurrently with the application of the provisions of this section without regard to this subsection, as of January 1, 2027, the provisions of this section shall be reapplied— (A) as though such provisions were enacted on such date, and (B) by substituting such date for— (i) the date of the enactment of Public Law 115–97 in subsection (b)(3), and (ii) the date of the enactment of the Tax Cuts and Jobs Act in subsection (c)(2)(B). (2) Subsequent rounds of designations Paragraph (1) shall be reapplied as of the first date that no designation of a qualified opportunity zone from the preceding round of designations remains in effect by reason of the application of subsection (f) to such round of designations. (3) Redesignations permitted Nothing in this subsection shall be construed to prevent the designation of a tract as a qualified opportunity zone merely because such tract was previously designated as such a zone if such tract otherwise meets the requirements for such designation as of the time of such subsequent designation. . (b) Application rules for investment in opportunity zones Section 1400Z–2 of such Code is amended by adding at the end the following new subsection: (g) Application for gains in subsequent rounds of designations (1) In general In the case of gain from the sale or exchange of property after December 31, 2026— (A) the taxpayer may make an election under subsection (a) with respect to such sale or exchange, and (B) subsections (a)(2)(B) and (b)(1)(B) shall be applied by substituting the applicable date for December 31, 2026 . (2) Applicable date For purposes of paragraph (1), the applicable date with respect to any sale or exchange shall be— (A) December 31, 2034, or (B) in the case of any sale or exchange after the most recently past date determined under this paragraph, the December 31 of the seventh year beginning after each instance paragraph (1) of section 1400Z–1(g) is reapplied by reason of paragraph (2) thereof. . (c) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act.