For the purposes of this subchapter, the term "qualified opportunity zone" means a population census tract that is a low-income community that is designated as a qualified opportunity zone.
For purposes of subsection (a), a population census tract that is a low-income community is designated as a qualified opportunity zone if—
(A) not later than the end of the determination period, the chief executive officer of the State in which the tract is located—
(i) nominates the tract for designation as a qualified opportunity zone, and
(ii) notifies the Secretary in writing of such nomination, and
(B) the Secretary certifies such nomination and designates such tract as a qualified opportunity zone before the end of the consideration period.
A chief executive officer of a State may request that the Secretary extend either the determination or consideration period, or both (determined without regard to this subparagraph), for an additional 30 days.
Each population census tract in Puerto Rico that is a low-income community shall be deemed to be certified and designated as a qualified opportunity zone, effective on the date of the enactment of Public Law 115–97.
For purposes of this subsection—
The term "low-income community" has the same meaning as when used in section 45D(e).
The term "consideration period" means the 30-day period beginning on the date on which the Secretary receives notice under subsection (b)(1)(A)(ii), as extended under subsection (b)(2).
The term "determination period" means the 90-day period beginning on the date of the enactment of the Tax Cuts and Jobs Act, as extended under subsection (b)(2).
For purposes of this section, the term "State" includes any possession of the United States.
Except as provided by paragraph (2) and subsection (b)(3), the number of population census tracts in a State that may be designated as qualified opportunity zones under this section may not exceed 25 percent of the number of low-income communities in the State.
If the number of low-income communities in a State is less than 100, then a total of 25 of such tracts may be designated as qualified opportunity zones.
A population census tract that is not a low-income community may be designated as a qualified opportunity zone under this section if—
(A) the tract is contiguous with the low-income community that is designated as a qualified opportunity zone, and
(B) the median family income of the tract does not exceed 125 percent of the median family income of the low-income community with which the tract is contiguous.
Not more than 5 percent of the population census tracts designated in a State as a qualified opportunity zone may be designated under paragraph (1).
A designation as a qualified opportunity zone shall remain in effect for the period beginning on the date of the designation and ending at the close of the 10th calendar year beginning on or after such date of designation.
(Added Pub. L. 115–97, title I, §13823(a), Dec. 22, 2017, 131 Stat. 2183; amended Pub. L. 115–123, div. D, title II, §41115, Feb. 9, 2018, 132 Stat. 161.)
The date of the enactment of Public Law 115–97, referred to in subsec. (b)(3), is Dec. 22, 2017.
The date of the enactment of the Tax Cuts and Jobs Act, referred to in subsec. (c)(2)(B), probably means the date of enactment of title I of Pub. L. 115–97, which was approved Dec. 22, 2017. Prior versions of the bill that was enacted into law as Pub. L. 115–97 included such Short Title, but it was not enacted as part of title I of Pub. L. 115–97.
2018—Subsec. (b)(3). Pub. L. 115–123, §41115(a), added par. (3).
Subsec. (d)(1). Pub. L. 115–123, §41115(b), inserted "and subsection (b)(3)" after "paragraph (2)".
Section effective on Dec. 22, 2017, see section 13823(d) of Pub. L. 115–97, set out as an Effective Date of 2017 Amendment note under section 1016 of this title.
There are no related Treasury Regulations for this Code section. To browse a full list of Treasury Regulations within TouchTax, view the "All Regulation Sections" option.
The preliminary Code is a preliminary release of the Internal Revenue Code of 1986 (the "Code") by the Office of the Law Revision Counsel and is subject to further revision before it is released again as a final version. The source of the preliminary Code used in TouchTax is available here: https://uscode.house.gov/download/download.shtml. The Code is a consolidation and codification by subject matter of the general and permanent laws of the U.S. prepared by the Office of the Law Revision Counsel of the U.S. House of Representatives. The Treasury Regulations are a codification of the general and permanent rules published in the Federal Register by the departments and agencies of the federal government. The version of the Treasury Regulations available within TouchTax is part of the Electronic Code of Federal Regulations which is not an official legal edition of the Code of Federal Regulations but is an editorial compilation of CFR material and Federal Register amendments produced by the National Archives and Records Administration's Office of the Federal Register (OFR) and the Government Publishing Office. The source of the CFR used in TouchTax is available here: https://www.govinfo.gov/bulkdata/ECFR/title-26. Those using TouchTax for legal research should verify their results against the printed versions of the Code and Treasury Regulations. TouchTax is copyright 2024 by Com-Lab (Mobile). Learn more at http://touchtax.edrich.de.