To amend the Internal Revenue Code of 1986 to modify the rules for investments in qualified opportunity funds, and for other purposes.
Latest action: Referred to the House Committee on Ways and Means. (2026-03-05)
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What this bill does
This bill extends the federal Opportunity Zone tax incentive program, which lets investors defer and reduce taxes on capital gains they reinvest into designated low-income areas. It pushes back key deadlines by about ten years and adds new affordability rules for residential rental projects that want to qualify for the tax benefits.
Who it affects
It would most affect investors who put capital gains into Opportunity Funds and the developers and renters tied to residential rental projects in designated Opportunity Zones.
Key points
- Extends the period Opportunity Zone designations stay in effect from the 10th to the 20th calendar year.
- Extends deadlines for making qualifying investments and deferring gains from the end of 2026 to the end of 2036.
- For residential rental projects, ties the tax basis step-up to having at least 50% of occupied units rented to people at or below the area median income at the point gain is recognized.
- Increases the basis step-up percentages (to 15% and 7%) for investments in qualifying residential rental projects.
- Sets new rules for residential rental projects to count as qualified property, including a 30% affordable-occupancy threshold, a 3% annual rent increase cap, and 60-day advance notice of rent increases.
Plain-English summary generated by AI from the official record. Neutral by design; verify against the official text linked above.
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1 · Your position
If you support this
Supporting this bill means keeping the Opportunity Zone tax breaks going for roughly another decade while attaching income-based affordability and rent-cap conditions to the tax benefits for rental housing projects.
If you oppose this
Opposing this bill means letting the current Opportunity Zone investment deadlines expire on their existing schedule without adding the new rental affordability requirements.
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