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 would extend and modify the Opportunity Zone tax program, which lets investors defer and reduce taxes on capital gains they reinvest in designated low-income areas. It would push the program's key deadlines about 10 years later (into the mid-2030s) and extend how long zone designations last. It also adds new affordable-housing conditions for residential rental projects to qualify for the tax benefits.
Who it affects
Investors with capital gains who use Opportunity Funds, real estate developers building rental housing in Opportunity Zones, and renters in those projects who could be affected by the new income-targeting and rent-increase rules.
Key points
- Extends Opportunity Zone designations from 10 to 20 calendar years and extends the investment/election period deadline from December 31, 2026 to December 31, 2036.
- For residential rental projects, investors get the basis-increase tax benefit only if at least 50% of occupied units are rented to people at or below 100% of area median income when gain is recognized.
- Raises the basis step-up percentages for qualifying residential rental investments (from 10% to 15%, and from 5% to 7%).
- To count as qualified property, a residential rental project must keep at least 30% of occupied units rented to people at or below area median income, cap annual rent increases at 3%, and give at least 60 days' notice before raising rent.
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1 · Your position
If you support this
Supporting this bill means backing a roughly 10-year extension of the Opportunity Zone tax-break program while adding affordability, rent-cap, and notice requirements for rental housing projects to qualify.
If you oppose this
Opposing this bill means letting the current Opportunity Zone deadlines expire as scheduled and keeping the existing rules without the new extensions or the affordable-housing conditions.
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