To amend the Internal Revenue Code of 1986 to modify the rules for investments in qualified opportunity funds, and for other purposes.
- Bill Number
- H.R. 7820
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-05: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-31T21:26:38Z
AI-Generated Summary
Purpose This legislation amends the Internal Revenue Code to extend the timelines for Qualified Opportunity Zones and Qualified Opportunity Funds while adding new affordability requirements for investments in residential rental projects.
Key Provisions
- Extends the period for designating Qualified Opportunity Zones from the 10th to the 20th calendar year.
- Extends the deadline for making investments eligible for tax deferral from December 31, 2026, to December 31, 2036.
- Adjusts the date when deferred gains must be recognized to December 31, 2036, for new investments made after enactment.
- For residential rental projects:
- Requires that at least 50 percent of occupied units be rented to households at or below 100 percent of area median income to qualify for certain basis increases.
- Increases the required basis step-up percentages from 10 percent to 15 percent and from 5 percent to 7 percent for qualifying projects.
- Establishes new standards for a residential rental project to qualify as opportunity zone property, including 30 percent low-income occupancy, annual rent increases capped at 3 percent, and 60-day advance notice for any rent increases.
Significant Changes to Existing Law The bill lengthens the original 10-year designation window and 2026 investment cutoff created in the 2017 tax law, while introducing income-based occupancy rules and rent controls that did not previously apply to residential investments in opportunity funds.
Potential Impacts
- On government agencies: The Internal Revenue Service would administer extended deferral periods and new compliance rules for residential projects.
- On citizens: May increase availability of affordable rental housing in designated zones but could limit returns for some investors and affect rent levels.
- On international relations: No direct effects identified.
Main Stakeholders Affected
- Investors in Qualified Opportunity Funds.
- Real estate developers and property owners focused on residential rental projects.
- Low- and moderate-income renters in opportunity zones.
- Local governments and communities within designated zones.
Notable Legal, Constitutional, or Political Implications The changes remain within Congress’s authority to modify the tax code. They introduce new regulatory conditions on tax benefits that could affect property rights and investment decisions, with potential for future legal challenges regarding the scope of tax incentives tied to housing affordability standards.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Cherfilus-McCormick, Sheila [D-FL-20]
Recent Actions
- 2026-03-05: Referred to the House Committee on Ways and Means.
- 2026-03-05: Introduced in House
- 2026-03-05: Introduced in House
Bill Versions
- To amend the Internal Revenue Code of 1986 to modify the rules for investments in qualified opportunity funds, and for other purposes. — issued 2026-03-05 — PDF (5 pages)