[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6529 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6529
To amend the Internal Revenue Code of 1986 to modify the opportunity
zone tax incentives.
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IN THE HOUSE OF REPRESENTATIVES
April 17, 2020
Mr. Curtis (for himself and Mr. Cuellar) introduced the following bill;
which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to modify the opportunity
zone tax incentives.
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 ``COVID-19-Impacted Small Business
Opportunity Zone Act''.
SEC. 2. MODIFICATION OF OPPORTUNITY ZONE TAX INCENTIVES.
(a) Small Businesses Affected by COVID-19 Treated as Qualified
Opportunity Zone Businesses.--Section 1400Z-2(d)(3) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(C) Certain small businesses affected by covid-19
treated as qualified opportunity zone businesses.--
``(i) In general.--Subparagraph (A)(i)
shall not apply with respect to any qualified
small business.
``(ii) Qualified small business.--For
purposes of this subparagraph, the term
`qualified small business' means any small
business if such small business has experienced
any of the following as a result of the spread
of, or of the public's or any government's
response to, COVID-19--
``(I) supply chain disruptions,
including changes in quantity, lead
time, delay, or the number of shipments
of components; changes in the quality
of supplied components; and disruption
by reason of compromised payment
networks or other technological
reasons,
``(II) staffing challenges,
``(III) decrease in sales or
customers, or
``(IV) partial or full suspension
of business.
``(iii) Small business.--For purposes of
this subparagraph, the term `small business'
means any trade or business if the gross
receipts (as determined under the rules of
section 448(c)(3), without regard to
subparagraph (A) thereof) of such trade or
business (when combined with all related trades
or businesses) for the relevant taxable year do
not exceed $999,999. For purposes of the
preceding sentence, a trade or business shall
be treated as related if it is a trade or
business of the same person or of any person
treated as one person under section 448(c)(2).
For purposes of this clause, the term `relevant
taxable year' means the last taxable year which
ends before the date on which the qualified
opportunity zone fund acquires the qualified
opportunity fund property to which such trade
or business relates.
``(iv) Application of subparagraph.--Clause
(i) shall only apply with respect to qualified
opportunity fund property acquired by a
qualified opportunity zone fund during the 1-
year period beginning on the date of the
enactment of this subparagraph.''.
(b) Application of Capital Gains Rate for Taxable Year in Which
Investment Is Acquired.--Section 1400Z-2(b) of such Code is amended by
adding at the end the following new paragraph:
``(3) Application of capital gains rates.--The rate of tax
which applies to gain which is included in income as provided
in this subsection shall not exceed the rate applicable to such
gain in the taxable year in which the investment was acquired.
Proper adjustments shall be made in the application of section
1(h) for the taxable year in which such gain is included in
gross income to take into account the preceding sentence.''.
(c) Extension of Deferral of Gain Invested in Opportunity Zones.--
Section 1400Z-2(b)(1)(B) of such Code is amended to read as follows:
``(B) the date which is 7 years after the date on
which such investment was acquired.''.
(d) Exemption From Tax for Investments Held for at Least 10 Years
Without Regard to Whether Investment Consists of Reinvested Gain.--
Section 1400Z-2(c) of such Code is amended by striking ``any
investment'' and inserting ``any investment in a qualified opportunity
fund (without regard to whether such investment is described in
subsection (a))''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
investments in qualified opportunity funds made after the date
of the enactment of this Act.
(2) Small businesses affected by covid-19 treated as
qualified opportunity zone businesses.--The amendment made by
subsection (a) shall apply to property acquired by qualified
opportunity zone funds after the date of the enactment of this
Act.
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