Mike Kelly (R-PA)
To amend the Internal Revenue Code of 1986 to renew and enhance opportunity zones, and for other purposes.
A Republican bill with no cosponsors
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 seeks to amend the Internal Revenue Code of 1986 to renew and enhance the opportunity zone program. It introduces a new round of qualified opportunity zone designations, which includes a specific focus on rural areas. The legislation modifies the definition of low-income communities and creates new incentives for investments made after 2026. It also establishes specific rules for "qualified rural opportunity funds" to encourage development in rural locations. Additionally, the bill implements new information reporting requirements for qualified opportunity funds and their associated businesses. Finally, it mandates annual public reporting by the Secretary of the Treasury regarding the impact and outcomes of these investments.
Yes· 3 of 16
- Scored +7
Would people in rural areas be better off under this?
The bill specifically prioritizes rural areas with enhanced incentives and required proportions of designations.
- Scored +6
Does this invest in rural communities?
The bill explicitly provides enhanced incentives for qualified rural opportunity funds to encourage development in rural areas.
- Scored +5
Would high-income households be better off under this?
The bill provides significant tax incentives for investors in opportunity zones.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Enhanced Incentives for Rural Development: The bill increases the basis adjustment for investments held for at least 5 years to 30 percent specifically for qualified rural opportunity funds, which is higher than the standard 10 percent increase (Section 1(c)(1)(vi)).
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Support for Rural Areas: A portion of new opportunity zone designations must be comprised entirely of a rural area, ensuring that rural communities have access to these designated zones (Section 1(b)(2)(A)).
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Incentives for Improving Existing Structures: The bill provides a rule for the adjusted basis of property in a qualified opportunity zone comprised entirely of a rural area, specifically including data centers (Section 1(c)(3)).
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Increased Investment Opportunities: The bill allows for a new round of designations that can remain in effect from January 1, 2027, through December 31, 2033 (Section 1(b)(2)(4)).
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Expanded Definition of Low-Income Communities: The bill modifies the definition of low-income communities by substituting '70 percent' for '80 percent' in certain applications (Section 1(a)(1)(2)).
Potential Negative Impacts for People
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Penalties for Reporting Failures: Qualified opportunity funds that fail to file complete and correct returns face a penalty of $500 for each day the failure continues, with maximum penalties reaching up to $50,000, or $250,000 in cases of intentional disregard (Section 1(d)(2)(A)).
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Restrictions on Certain Census Tracts: Certain population census tracts are disallowed from being considered low-income communities if the median family income reaches specific thresholds relative to statewide or metropolitan area medians (Section 1(a)(1)(C)).
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 people in rural areas be better off under this? — The bill specifically prioritizes rural areas with enhanced incentives and required proportions of designations. Would billionaires be better off under this? — The tax advantages are highly beneficial for very large capital deployments. Would high-income households be better off under this? — The bill provides significant tax incentives for investors in opportunity zones. Would people with substantial wealth be better off under this? — The bill offers substantial tax benefits for large-scale investments in qualified opportunity funds. Would the very wealthiest people be better off under this? — The bill caters to high-value investment structures. Would business owners be better off under this? — The bill creates new investment avenues and incentives for business growth in specific areas. Would households on low incomes be better off under this? — The bill focuses on investing in low-income communities to improve economic outcomes. Would people in cities be better off under this? — While focusing on rural areas, the general opportunity zone framework still benefits urban designated tracts.
- Economy And Finance
- Is this likely to grow the economy? — The bill encourages long-term investment in designated communities to drive growth. Does this cut the tax on profits from selling investments? — The bill provides tax incentives by increasing the basis of investments held for at least 5 years, particularly for rural funds. Is this likely to create jobs? — The bill aims to stimulate economic activity and job creation through increased investment in opportunity zones. Does this make it easier to run a small business? — By stimulating investment in specific tracts, it creates opportunities for local businesses.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — By targeting low-income communities, the bill seeks to drive economic improvement and poverty reduction. Does this make housing cost less? — The bill may indirectly support housing through investment in residential units in opportunity zones.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — The bill explicitly provides enhanced incentives for qualified rural opportunity funds to encourage development in rural areas.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill mandates annual public reporting by the Secretary of the Treasury regarding the impact and outcomes of investments.
- 6/3/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.