Referred to the House Committee on Ways and Means.
The bill creates a new Section 1400Z–3 in the Internal Revenue Code that allows taxpayers to elect to defer capital gains by investing those gains in certified “qualified distressed opportunity funds.” Those funds must invest at least 90 percent of assets in qualified distressed opportunity zone property—defined as brownfield sites or facilities on the CERCLA National Priorities List. The law largely mirrors existing opportunity-zone tax timing incentives: deferral until sale or December 31, 2033, basis increases for 5- and 7-year holdings, and a fair-market-value basis step-up for investments held ten years.
Liberals stress missing environmental, labor, and community safeguards.
Relative to its intended legislative type, this bill sets out a detailed and legally integrated tax incentive for investing capital gains in designated brownfield and Superfund sites, with clear definitions and concrete tax mechanics, but it omits statutory fiscal acknowledgement and limitedizes statutory accountability/administrative detail by delegating several implementation elements to regulation.
The bill creates a new Section 1400Z–3 in the Internal Revenue Code that allows taxpayers to elect to defer capital gains by investing those gains in certified “qualified distressed opportunity funds.” Those funds must invest at least 90 percent of assets in qualified distressed opportunity zone property—defined as brownfield sites or facilities on the CERCLA National Priorities List.
The law largely mirrors existing opportunity-zone tax timing incentives: deferral until sale or December 31, 2033, basis increases for 5- and 7-year holdings, and a fair-market-value basis step-up for investments held ten years.
The Secretary of the Treasury must issue certification and anti-abuse regulations; penalties apply if funds fail the 90-percent asset test.
Moderately targeted, administrable proposal with bipartisan appeal to developers and cleanup advocates, but revenue cost and tax‑expenditure optics reduce likelihood without offsets or broad coalition.
Relative to its intended legislative type, this bill sets out a detailed and legally integrated tax incentive for investing capital gains in designated brownfield and Superfund sites, with clear definitions and concrete tax mechanics, but it omits statutory fiscal acknowledgement and limitedizes statutory accountability/administrative detail by delegating several implementation elements to regulation.
Liberals stress missing environmental, labor, and community safeguards.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals stress missing environmental, labor, and community safeguards.
Cautiously skeptical.
The policy could mobilize private capital for contaminated sites, but lacks explicit environmental, labor, or community-benefit guardrails.
Without stronger protections and accountability, it risks subsidizing developers and displacement without guaranteed remediation standards.
Moderately supportive but pragmatic.
The targeted tax incentive could mobilize capital to high-need sites, yet needs clearer oversight, cost estimates, and measurable success metrics.
Will seek balanced regulatory guardrails and sunset/assessment provisions.
Generally supportive.
The bill uses market incentives to attract private capital for brownfield and Superfund sites, potentially reducing federal cleanup costs and encouraging redevelopment.
Prefers private investment and limited government intervention to solve remediation problems.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Moderately targeted, administrable proposal with bipartisan appeal to developers and cleanup advocates, but revenue cost and tax‑expenditure optics reduce likelihood without offsets or broad coalition.
The bill has not accumulated any surfaced votes yet.
Liberals stress missing environmental, labor, and community safeguards.
Moderately targeted, administrable proposal with bipartisan appeal to developers and cleanup advocates, but revenue cost and tax‑expenditur…
Relative to its intended legislative type, this bill sets out a detailed and legally integrated tax incentive for investing capital gains in designated brownfield and Superfund sites, with clear definitions and concrete…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.