This bill creates tax incentives for investors who put capital gains into special investment funds focused on cleaning up and developing contaminated brownfield and Superfund sites. Investors can defer paying taxes on their capital gains if they reinvest them in qualified distressed opportunity funds within 180 days of a sale, with the taxes ultimately due by 2033 or when the investment is sold, whichever comes first. The bill also offers tax breaks for long-term investors—those holding investments for at least 5, 7, or 10 years receive increasingly larger increases to their tax basis, with investors holding for 10 years getting full tax forgiveness on gains. The investment funds must maintain at least 90 percent of their assets in qualifying properties like businesses, equipment, or real estate in distressed zones, and face penalties if they fall short of this requirement. The program applies to investments made after the bill's enactment and sunsets on December 31, 2033.
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