This bill modifies requirements relating to opportunity zone investment (i.e., investment in economically distressed areas) to require its funds to meet specified investment advisory board, diversity, and affordable housing requirements. It also requires that at least 5% of a fund's qualified opportunity zone property is controlled-environment agriculture property.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9338 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9338
To amend the Internal Revenue Code of 1986 to require fairness and
diversity in opportunity zone investment and to require minimum
investment in controlled-environment agriculture.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2022
Mr. Johnson of Georgia (for himself, Mr. Rush, and Ms. Jackson Lee)
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 require fairness and
diversity in opportunity zone investment and to require minimum
investment in controlled-environment agriculture.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. OPPORTUNITY ZONE FAIRNESS AND INCLUSION.
(a) In General.--Section 1400Z-2(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Opportunity fund fairness and inclusion.--
``(A) In general.--A fund shall not be treated as a
qualified opportunity fund for purposes of this section
unless such fund--
``(i) meets the investment advisory board
requirements of subparagraph (B),
``(ii) meets the investment diversity
requirements of subparagraph (C),
``(iii) meets the affordable housing
investment requirements of subparagraph (D),
and
``(iv) with respect to each investment in
an opportunity zone, assesses, and prepares a
written report detailing, how such investment
will affect different racial and ethnic groups
within the zone and submits such report to the
Committee on Ways and Means of the House of
Representatives, the Committee on Finance of
the Senate, and the Joint Committee on
Taxation.
``(B) Investment advisory board.--The requirements
of this subparagraph shall not be treated as met with
respect to any fund unless such fund has, for each
qualified opportunity zone within which the fund
invests in qualified opportunity zone property, an
investment advisory board which--
``(i) is appointed by the local government
of the jurisdiction within which the zone to
which such advisory board relates is located,
and
``(ii) advises the fund in directing
investments in the zone for the benefit of the
zone.
``(C) Investment diversity requirements.--The
requirements of this subparagraph shall not be treated
as met with respect to any fund unless--
``(i) at least 30 percent of the fund's
qualified opportunity zone property is
qualified opportunity zone property with
respect to an opportunity zone within a county,
or local jurisdiction, the population of which
is 200,000 or less,
``(ii) at least 50 percent of the fund's
qualified opportunity zone property consists of
interests in partnerships, and stock of
corporations, which are--
``(I) small business concerns owned
and controlled by women (within the
meaning of section 3(n) of the Small
Business Act (15 U.S.C. 632(n))), or
``(II) small business concerns
owned and controlled by socially and
economically disadvantaged individuals
under section 8(d)(3)(C) of such Act
(15 U.S.C. 637(d)(3)(C)), and
``(iii) at least 40 percent of the fund's
qualified opportunity zone property consists
of--
``(I) stock in corporations,
interests in a partnerships, or other
property, the value of each of which
does not exceed $20 million, and
``(II) stock in corporations, or
interests in partnerships, the price-
earnings ratio of each of which is
under 5.
``(D) Affordable housing investment requirements.--
The requirements of this subparagraph shall not be
treated as met with respect to any fund unless in the
case of any investment in qualified opportunity zone
property which consists of a residential property
project, at least 20 percent of the units in the
project are occupied by individuals whose income is--
``(i) not more than 30 percent of area
median gross income, or
``(ii) not more than 200 percent of the
poverty line (as defined in section 673 of the
Community Services Block Grant Act (42 U.S.C.
9902)) for a family of the size involved.
``(E) Investment measurement.--For purposes of this
paragraph, percentages of qualified opportunity zone
property held by a qualified opportunity fund shall be
determined under rules similar to the rules of
paragraph (1).
``(F) Failure to meet requirement.--In the case of
a qualified opportunity fund which fails to meet any of
the requirements of this paragraph, subsection (b)
shall be applied by substituting the date of such
failure for `December 31, 2026' in paragraph (1)(B)
thereof.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 2. CONTROLLED-ENVIRONMENT AGRICULTURE INVESTMENT REQUIREMENT FOR
QUALIFIED OPPORTUNITY FUNDS.
(a) In General.--Section 1400Z-2(d) of the Internal Revenue Code of
1986, as amended by the preceding provisions of this Act, is amended by
adding at the end the following new paragraph:
``(5) Controlled-environment agriculture investment
requirement.--
``(A) In general.--A fund shall not be treated as a
qualified opportunity fund for purposes of this section
unless at least 5 percent of the fund's qualified
opportunity zone property is controlled-environment
agriculture property.
``(B) Controlled-environment agriculture
property.--For purposes of this paragraph, the term
`controlled-environment agriculture property' means
property used in, or stock or a partnership interest in
an entity engaged in, the trade or business of a
machine learning, computer vision, high technology-
based approach toward food production that operates
with digitized food safety, digitized recallability, a
visual and data record of crops, and significant
environmental control systems to ensure quality,
uniformity, safety, increased efficiency of resources,
and reduced use of pesticides, herbicides, and
fungicides.''.
(b) Effective Date.--The amendment made by this section shall take
effect on January 1, 2023.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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