Chuck Edwards (R-NC)
Economic Opportunity for Distressed Communities Act
A Republican bill with 1 Democratic cosponsor · See the cosponsor
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, known as the "Economic Opportunity for Distressed Communities Act," aims to amend the Internal Revenue Code of 1986. It establishes special rules for capital gains that are invested into distressed opportunity zones. These zones include brownfield sites and certain Superfund sites. Investors can elect to exclude a portion of their capital gains from their gross income if they invest in a qualified distressed opportunity fund. The bill also outlines specific rules for the deferral and inclusion of these gains.
Yes· 3 of 12
- Scored +6
Would people with substantial wealth be better off under this?
The tax exclusion on capital gains is particularly beneficial for high-net-worth investors.
- Scored +6
Would the very wealthiest people be better off under this?
The ability to exclude large capital gains from income is a significant benefit for ultra-wealthy investors.
- Scored +6
Would billionaires be better off under this?
The tax incentives provided are highly relevant for individuals with very large capital gains.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Exclusions for Investors: Taxpayers can elect to exclude capital gains from their gross income if they invest those gains into a qualified distressed opportunity fund within a 180-day period (Section 2(a)(1)(A)).
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Benefits for Long-term Investors: Investors who hold their investment for at least 5 years receive a basis increase of 10 percent of the deferred gain, and those who hold for at least 7 years receive an additional 5 percent increase (Section 2(b)(2)(B)(iii-iv)).
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Significant Benefits for Long-term Holders: For investments held for at least 10 years, the taxpayer can elect to have the basis of the property equal to its fair market value on the date it is sold or exchanged (Section 2(b)(2)(C)).
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Investment in Distressed Areas: The bill targets specific areas such as brownfield sites and National Priorities List facilities for investment (Section 2(d)(4)).
Potential Negative Impacts for People
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Deadline for Elections: No election to exclude capital gains can be made for any sale or exchange that occurs after December 31, 2033 (Section 2(a)(1)(2)(B)).
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Inclusion of Deferred Gains: Gains that are deferred must eventually be included in gross income in the year the investment is sold or exchanged, or by December 31, 2033 (Section 2(b)(1)).
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Penalties for Investment Funds: If a qualified distressed opportunity fund fails to keep at least 90 percent of its assets in qualified distressed opportunity zone property, the fund must pay a monthly penalty (Section 2(f)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would billionaires be better off under this? — The tax incentives provided are highly relevant for individuals with very large capital gains. Would people with substantial wealth be better off under this? — The tax exclusion on capital gains is particularly beneficial for high-net-worth investors. Would the very wealthiest people be better off under this? — The ability to exclude large capital gains from income is a significant benefit for ultra-wealthy investors. Would high-income households be better off under this? — The bill provides significant tax advantages for investors with significant capital gains. Would business owners be better off under this? — Investors in opportunity funds may benefit from the development of new business properties. Would households on low incomes be better off under this? — Economic revitalization of distressed zones may benefit low-income residents. Would people in cities be better off under this? — Development of distressed opportunity zones could benefit urban residents in those specific areas.
- Economy And Finance
- Does this cut the tax on profits from selling investments? — The bill allows taxpayers to exclude or defer capital gains if invested in specific opportunity zones. Is this likely to grow the economy? — The bill promotes economic activity through targeted capital investment in distressed zones. Is this likely to create jobs? — By incentivizing investment in distressed areas, the bill may stimulate local job growth.
- Environment Energy And Infrastructure
- Does this better protect air, water and wildlife? — The bill incentivizes the cleanup and redevelopment of brownfield and Superfund sites.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Investment in distressed zones may indirectly aid poverty reduction by revitalizing communities.
- 3/24/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Jasmine CrockettDemocrat · Texas