Legislation Introduced to Reform Opportunity Zones Program

In the wake of criticism and media reports about potential abuses pertaining to the Opportunity Zone program, legislation has been introduced in both houses of the U.S. Congress to tighten rules around the program, create transparency and require more reporting.

Senate Finance Committee Ranking Member Ron Wyden (D-OR), along with co-sponsors Senator Michael F. Bennet (D-CO) and Senator Angus S. King Jr. (I-ME), introduced the Opportunity Zone Reporting & Reform Act of 2019, S. 2787 which will, among its features require “robust and public information reporting by all Qualified Opportunity Funds,” as well as annual reporting by QOF investors, clarifying rules regarding O-zone investments to ensure the funds are actually helping the community, and require program review by the Government Accountability Office. As of this writing, the bill has been read twice, and referred to the Committee on Finance.

“The Opportunity Zone program has been troubled from the start,” Wyden commented, in a statement, adding that “. . . there are no safeguards to ensure taxpayers are not simply subsidizing handouts for billionaires, with no benefit to the low-income communities this program was supposed to help.”

Meanwhile, House Majority Whip James E. Clyburn (SC-6), along with Congresswoman Alma Adams (NC-12) and Congressman William Lacy Clay (MO-1), introduced H.R. 5042, the Opportunity Zone Reform Act, which has as its goal to tighten O-Zone rules, and to terminate programs that aren’t low income. The legislation would also allow states to replace zones that are terminated. The bill has been referred to the House Committee on Ways and Means.

“From the start, I’ve raised concerns that the Opportunity Zone incentive would turn out to be a tax credit for rich investors, with limited benefits for low-income communities,” Clyburn said, in a statement. “This program needs to be tweaked if it is to accomplish its stated purpose, and this legislation makes the necessary reforms to ensure it is making an impact in the communities that need investments the most.”

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