The Economic Opportunity for Distressed Communities Act creates a tax incentive program to encourage investment in brownfield sites and superfund sites—contaminated properties listed on the Environmental Protection Agency's National Priorities List. Under this bill, investors who sell property and realize capital gains can defer taxes on those gains if they reinvest the proceeds in qualified distressed opportunity funds within 180 days. The investment funds must maintain at least 90 percent of their assets in eligible properties within these distressed zones, such as businesses, real estate, or equipment. Investors receive increasing tax benefits based on how long they hold their investments, including a 10 percent basis increase after five years, an additional 5 percent after seven years, and complete tax elimination on gains if investments are held for at least ten years. The program sunsets on December 31, 2032, and applies to investments made after the bill's enactment, with the Treasury Department responsible for developing regulations and certifying eligible funds.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.