I 116TH CONGRESS 1ST SESSION H. R. 4011 To amend the Internal Revenue Code of 1986 to require lead remediation for qualified opportunity zone property originally constructed before Jan- uary 1, 1978. IN THE HOUSE OF REPRESENTATIVES JULY 25, 2019 Mr. CUMMINGS (for himself and Ms. TLAIB) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to require lead remediation for qualified opportunity zone property originally constructed before January 1, 1978. 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 ‘‘Opportunity Zone 4 Lead Remediation Impact Act of 2019’’. 5 SEC. 2. LEAD REMEDIATION REQUIREMENTS FOR QUALI- 6 FIED OPPORTUNITY FUNDS. 7 (a) LEAD REMEDIATION REQUIREMENTS FOR PRE- 8 1978 PROPERTY.—Section 1400Z–2(d)(2)(D) of the In- 9 VerDate Sep 11 2014 19:24 Aug 27, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4011.IH H4011 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4011 IH ternal Revenue Code of 1986 is amended by adding at the 1 end the following new clause: 2 ‘‘(iv) LEAD REMEDIATION REQUIRE- 3 MENTS FOR PRE-1978 PROPERTY.—For 4 purposes of subparagraph (A)(ii), no resi- 5 dential property originally constructed be- 6 fore January 1, 1978, shall be treated as 7 substantially improved by the qualified op- 8 portunity zone fund unless, after improve- 9 ment— 10 ‘‘(I) such property contains no 11 painted surfaces that exceed the levels 12 described in section 302(c) of the 13 Lead-Based Paint Poisoning and Pre- 14 vention Act, and 15 ‘‘(II) any pipes and fixtures of 16 such property are lead free (as such 17 term is defined in section 1417 of the 18 Safe Water Drinking Act).’’. 19 (b) DONATION OF OPPORTUNITY FUND ASSETS.— 20 Section 1400Z–2(d)(1) Internal Revenue Code of 1986 is 21 amended by striking ‘‘that holds’’ and all that following 22 through the period at the end and inserting the following: 23 ‘‘that— 24 VerDate Sep 11 2014 19:24 Aug 27, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4011.IH H4011 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4011 IH ‘‘(A) holds at least 88 percent of its assets 1 in qualified opportunity zone property, deter- 2 mined by the average of the percentage of 3 qualified opportunity zone property held in the 4 fund as measured— 5 ‘‘(i) on the last day of the first 6- 6 month period of the taxable year of the 7 fund, and 8 ‘‘(ii) on the last day of the taxable 9 year of the fund, and 10 ‘‘(B) donates not less than 2 percent of 11 amounts invested in such fund for use for reme- 12 diation of lead hazards in paint, dust, soil, and 13 drinking water in residential properties, non- 14 residential buildings housing child care facilities 15 (within the meaning of section 305 of the Toxic 16 Substances Control Act), or school facilities 17 (within the meaning of section 501 of such Act) 18 in a qualified opportunity zone.’’. 19 (c) EFFECTIVE DATE.—The amendments made by 20 this Act shall apply to capital gains realized in taxable 21 years beginning after the date of the enactment of this 22 Act. 23 Æ VerDate Sep 11 2014 19:24 Aug 27, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H4011.IH H4011 pamtmann on DSKBC07HB2PROD with BILLS