[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7820 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7820
To amend the Internal Revenue Code of 1986 to modify the rules for
investments in qualified opportunity funds, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
March 5, 2026
Mrs. Cherfilus-McCormick 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 rules for
investments in qualified opportunity funds, 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. MODIFICATION OF RULES FOR INVESTMENTS IN QUALIFIED
OPPORTUNITY FUNDS.
(a) Extension of Designation Period of Qualified Opportunity
Zones.--Section 1400Z-1(f) of the Internal Revenue Code of 1986 is
amended by striking ``10th calendar year'' and inserting ``20th
calendar year''.
(b) Extension of Election Period.--Section 1400Z-2(a)(2)(B) is
amended by striking ``December 31, 2026'' and inserting ``December 31,
2036''.
(c) Year of Inclusion.--Subparagraph (B) of section 1400Z-2(b)(1)
of such Code is amended to read as follows:
``(B)(i) December 31, 2026, in the case of an
amount invested before the date of the enactment of
this clause, and
``(ii) December 31, 2036, in the case of an amount
invested after the date of the enactment of this clause
and before January 1, 2037.''.
(d) Rules Applicable to Investments Involving Residential Rental
Projects.--
(1) Increases in basis.--Section 1400Z-2(b)(2)(B) of such
Code is amended--
(A) in clause (ii), by adding at the end the
following new sentence: ``Notwithstanding the preceding
sentence, if the taxpayer invests in a qualified
opportunity fund that holds any asset in qualified
opportunity zone property that is a residential rental
project, the basis in the taxpayer's investment shall
be increased in accordance with the preceding sentence
if, and only if, at least 50 percent of the occupied
residential units in the project are occupied, as of
the date gain is recognized by reason of subsection
(a)(1)(B), by individuals whose income, adjusted for
family size, is 100 percent or less of the area median
income.'',
(B) in clause (iii), by adding at the end the
following new sentence: ``In the case such investment
so held is an investment in a qualified opportunity
fund that holds any asset in qualified opportunity zone
property that is a residential rental project, the
preceding sentence shall be applied by substituting `15
percent' for `10 percent'.'', and
(C) in clause (iv), by adding at the end the
following new sentence: ``In the case such investment
so held is an investment in a qualified opportunity
fund that holds any asset in qualified opportunity zone
property that is a residential rental project, the
preceding sentence shall be applied by substituting `7
percent' for `5 percent'.''.
(2) Treatment of residential rental projects as qualified
opportunity zone property.--Section 1400Z-2(d) of such Code is
amended by adding at the end the following new paragraph:
``(4) Treatment of residential rental projects as qualified
opportunity zone property.--A residential rental project shall
be treated as qualified opportunity zone property if, and only
if, the project meets the following requirements:
``(A) The project meets the definition of qualified
opportunity zone business property in paragraph (2)(D).
``(B) At least 30 percent of the occupied
residential units in the project are occupied by
individuals whose income, adjusted for family size, is
100 percent or less of the area median income during
substantially all of the qualified opportunity fund's
holding period for such property.
``(C) Rent increases do not exceed 3 percent
annually for any of the residential units in the
project.
``(D) At least 60-day advance notice is provided
with respect to any rent increase for a residential
unit in the project.''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Extension of designation period of qualified
opportunity zones.--The amendment made by subsection (a) shall
apply to designations in effect on the date of the enactment of
this Act.
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