[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4055 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4055

To amend the Internal Revenue Code of 1986 to exclude interest on loans 
  by depository institutions to qualified opportunity zone businesses 
               from gross income, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 2023

   Mr. Barr 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 exclude interest on loans 
  by depository institutions to qualified opportunity zone businesses 
               from gross income, and for other purposes.

    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 ``Opportunity Zones Enhancement Act of 
2023''.

SEC. 2. EXCLUSION FOR INTEREST ON LOANS TO QUALIFIED OPPORTUNITY ZONE 
              BUSINESSES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139I the following new section:

``SEC. 139J. INTEREST ON LOANS TO QUALIFIED OPPORTUNITY ZONE 
              BUSINESSES.

    ``(a) Exclusion.--Gross income shall not include an amount equal to 
so much of the interest received by a depository institution on any 
loan to a qualified borrower as does not exceed the lesser of--
            ``(1) the taxpayer's retained earnings attributable to the 
        taxable year, or
            ``(2) $5,000,000.
    ``(b) Depository Institution.--For purposes of this section, the 
term `depository institution' has the meaning given such term in 
section 3 of the Federal Deposit Insurance Act.
    ``(c) Qualified Borrower.--For purposes of this section, the term 
`qualified borrower' means a borrower that at the time of origination 
of the loan is a qualified opportunity zone business (as defined in 
section 1400Z-2(d)).
    ``(d) Retained Earnings.--For purposes of this section, the term 
`retained earnings' means the excess of the taxpayer's earnings and 
profits (within the meaning of section 316(a)(2)) for the taxable year 
over the dividends paid by the taxpayer during such taxable year.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2023, the dollar amounts in subsections (a)(2) 
        and (e) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2022' for `calendar year 2016' in 
                subparagraph (A)(ii).
            ``(2) Rounding.--Any amount under paragraph (1) shall be 
        rounded to the nearest multiple of $1,000,000.
    ``(f) Controlled Group.--
            ``(1) In general.--In the case of a depository institution 
        which is a member of a controlled group which includes one or 
        more other depository institutions, such institutions shall for 
        purposes of applying the dollar amounts in subsections (a) and 
        (b) be treated as one depository institution.
            ``(2) Definition.--For purposes of this subsection, the 
        term `controlled group' means any group treated as a single 
        employer under subsection (b), (c), (m), or (o) of section 414.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.
    ``(h) Coordination With Section 265.--Loans from a depository 
institution to a qualified borrower shall be treated as obligations 
described in section 265(a)(2) the interest on which is wholly exempt 
from the taxes imposed by this subtitle.''.
    (b) Clerical Amendment.--The table of sections for such part III is 
amended by inserting after the item relating to section 139I the 
following new item:

``Sec. 139J. Interest on loans to qualified opportunity zone 
                            businesses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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