The original authors of the 2017 tax law’s opportunity zones tax breaks plan to introduce a bill that would extend an incentive that expires for investors who take advantage of the provision after 2019, an aide to one of the lawmakers said.
The bill, to be introduced with Sen. Cory Booker, would move back by one year the start date of the tax breaks. Under tax code Section 1400Z-2, investors can defer tax on their stock profits and other gains if they invest in designated census tracts and exclude 10 percent of their gains from tax if they hold the investment for five years. Investors can pay no tax on the appreciation of the opportunity fund assets if they hold onto them for a decade.
Investors can exclude 15 percent of the gains from tax if they hold it for seven years-until the end of 2026, meaning they have until the end of 2019 to get started under current law.
Hawkins also confirmed that Scott and Booker will release a bill to reinstate reporting requirements that were taken out of the tax overhaul bill ahead of its passage. House Democrats have been hesitant to make changes to the Republican-led tax law before conducting multiple hearings on its effects.