Disaster Opportunity Zones Act

II 116TH CONGRESS 1ST SESSION S. 1000 To amend the Internal Revenue Code of 1986 to allow the designation of opportunity zones for population census tracts affected by Hurricane Florence, Hurricane Michael, and the Mendocino, Carr, Camp, Woolsey, and Hill wildfires. IN THE SENATE OF THE UNITED STATES APRIL 3, 2019 Mr. RUBIO (for himself and Mr. SCOTT of Florida) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow the designation of opportunity zones for population census tracts affected by Hurricane Florence, Hurricane Mi- chael, and the Mendocino, Carr, Camp, Woolsey, and Hill wildfires. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Disaster Opportunity 4 Zones Act’’. 5 VerDate Sep 11 2014 17:07 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1000.IS S1000 pbinns on DSK79D2C42PROD with BILLS 2 •S 1000 IS SEC. 2. ADDITIONAL DESIGNATIONS OF OPPORTUNITY 1 ZONES. 2 Section 1400Z–1 of the Internal Revenue Code of 3 1986 is amended by adding at the end the following new 4 subsection: 5 ‘‘(g) ADDITIONAL DESIGNATIONS FOR CERTAIN DIS- 6 ASTER AREAS.— 7 ‘‘(1) IN GENERAL.—Notwithstanding subsection 8 (d), an eligible population census tract may be des- 9 ignated as a qualified opportunity zone. 10 ‘‘(2) PROCESS FOR DESIGNATION.—An eligible 11 population census tract shall be designated as a 12 qualified opportunity zone in the same manner as 13 described in subsection (b), except that for purposes 14 of applying such subsection to eligible population 15 census tracts, the determination period shall be the 16 90-day period beginning on the date of the enact- 17 ment of this subsection (as extended under sub- 18 section (b)(2)). 19 ‘‘(3) LIMITATION.—The number of eligible pop- 20 ulation census tracts that may be designated under 21 this subsection may not exceed the greater of— 22 ‘‘(A) 25 percent of the eligible population 23 census tracts in the State, or 24 ‘‘(B) 25. 25 VerDate Sep 11 2014 17:07 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1000.IS S1000 pbinns on DSK79D2C42PROD with BILLS 3 •S 1000 IS ‘‘(4) SPECIAL RULES.—In applying this sub- 1 chapter to any qualified opportunity zone designated 2 under this subsection, for purposes of determining— 3 ‘‘(A) whether any property which would 4 not be qualified opportunity fund business prop- 5 erty without regard to this subsection is quali- 6 fied opportunity fund business property, and 7 ‘‘(B) whether any corporation or partner- 8 ship which is not a qualified opportunity fund 9 business without regard to this subsection is a 10 qualified opportunity fund business, 11 subparagraphs (B)(i)(I), (C)(i), and (D)(i)(I) of sec- 12 tion 1400Z–2(d)(2) shall each be applied by sub- 13 stituting ‘the incident beginning date of the disaster 14 described in section 1400Z–1(g)(5)(B) with respect 15 to such qualified opportunity zone’ for ‘December 16 31, 2017’. 17 ‘‘(5) ELIGIBLE POPULATION CENSUS TRACT.— 18 For purposes of this subsection— 19 ‘‘(A) IN GENERAL.—The term ‘eligible 20 population census tract’ means a population 21 census tract which— 22 ‘‘(i) is a low-income community, and 23 ‘‘(ii) is part of a qualified disaster 24 zone. 25 VerDate Sep 11 2014 17:07 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1000.IS S1000 pbinns on DSK79D2C42PROD with BILLS 4 •S 1000 IS ‘‘(B) QUALIFIED DISASTER ZONE.— 1 ‘‘(i) IN GENERAL.—The term ‘quali- 2 fied disaster zone’ means that portion of 3 the Hurricane Florence disaster area, the 4 Hurricane Michael disaster area, the 5 Mendocino and Carr wildfire disaster area, 6 and the Camp, Woolsey, and Hill wildfire 7 disaster area which is determined by the 8 President to warrant individual or indi- 9 vidual and public assistance from the Fed- 10 eral Government under the Robert T. Staf- 11 ford Disaster Relief and Emergency Assist- 12 ance Act by reason of the hurricane or 13 wildfires with respect to which the major 14 disaster with respect to the area were de- 15 clared. 16 ‘‘(ii) HURRICANE FLORENCE DIS- 17 ASTER AREA.—The term ‘Hurricane Flor- 18 ence disaster area’ means any area with 19 respect to which a major disaster has been 20 declared by the President before December 21 17, 2018, under section 401 of the Robert 22 T. Stafford Disaster Relief and Emergency 23 Assistance Act by reason of Hurricane 24 Florence. 25 VerDate Sep 11 2014 17:07 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1000.IS S1000 pbinns on DSK79D2C42PROD with BILLS 5 •S 1000 IS ‘‘(iii) HURRICANE MICHAEL DISASTER 1 AREA.—The term ‘Hurricane Michael dis- 2 aster area’ means any area with respect to 3 which a major disaster has been declared 4 by the President before December 17, 5 2018, under section 401 of the Robert T. 6 Stafford Disaster Relief and Emergency 7 Assistance Act by reason of Hurricane Mi- 8 chael. 9 ‘‘(iv) MENDOCINO AND CARR WILD- 10 FIRE DISASTER AREA.—The term 11 ‘Mendocino and Carr wildfire disaster area’ 12 means any area with respect to which be- 13 tween August 4, 2018, and December 17, 14 2018, a major disaster has been declared 15 by the President under section 401 the 16 Robert T. Stafford Disaster Relief and 17 Emergency Assistance Act by reason of the 18 wildfire in California commonly known as 19 the Mendocino and Carr wildfires of 2018. 20 ‘‘(v) CAMP, WOOLSEY, AND HILL 21 WILDFIRE DISASTER AREA.—The term 22 ‘Camp, Woolsey, and Hill wildfire disaster 23 area’ means any area with respect to which 24 between November 12, 2018, and Decem- 25 VerDate Sep 11 2014 17:07 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1000.IS S1000 pbinns on DSK79D2C42PROD with BILLS 6 •S 1000 IS ber 17, 2018, a major disaster has been 1 declared by the President under section 2 401 of the Robert T. Stafford Disaster Re- 3 lief and Emergency Assistance Act by rea- 4 son of the wildfires in California commonly 5 known as the Camp, Woolsey, and Hill 6 wildfires of 2018. 7 ‘‘(C) INCIDENT BEGINNING DATE.—The 8 term ‘incident beginning date’ means— 9 ‘‘(i) in the case of the Hurricane Flor- 10 ence disaster area, September 7, 2018, 11 ‘‘(ii) in the case of the Hurricane Mi- 12 chael disaster area, October 7, 2018, 13 ‘‘(iii) in the case of the Mendocino 14 and Carr wildfire disaster area, July 23, 15 2018, and 16 ‘‘(iv) in the case of the Camp, Wool- 17 sey, and Hill wildfire disaster area, No- 18 vember 8, 2018.’’. 19 Æ VerDate Sep 11 2014 17:07 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S1000.IS S1000 pbinns on DSK79D2C42PROD with BILLS