Sec. 102. Qualifying ordinary income added to special rules for investments in opportunity zones
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/bill/119/hr/4856/ih/section-102A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 1400Z–2 of the Internal Revenue Code of 1986 is amended— in the section heading, by striking and inserting capital gains invested , investments in subsection (a)— in paragraph (1)— in the heading, by inserting after qualifying ordinary income and , of by inserting qualifying ordinary income and after case of , by amending subparagraph
(A)to read as follows: gross income for the taxable year shall not include— so much of such gain as does not exceed the aggregate amount invested by the taxpayer in a qualified opportunity fund during the 180-day period beginning on the date of such sale or exchange, and so much of such qualifying ordinary income as does not exceed the aggregate amount invested by the taxpayer in a qualified opportunity fund during such taxable year, , and in subparagraph (B), by inserting qualifying ordinary income and after amount of , in paragraph (2)— in subparagraph (A), by striking or at the end, in subparagraph (B), by striking the period at the end and inserting , or , and by adding at the end the following: with respect to qualified ordinary income received in a taxable year beginning after December 31, 2026. , and by adding at the end the following: In this subsection, the term qualifying ordinary income means ordinary income other than income attributable to capital gains. , in subsection (b)— in the subsection heading, by inserting after qualifying ordinary income and , deferral of in paragraph (1), by striking Gain and inserting Qualifying ordinary income and gain , and in paragraph (2)— in subparagraph (A)— by inserting qualifying ordinary income and after amount of , and in clause (i), by striking of gain , and in subparagraph (B)— in the clause
(ii)heading, by striking and inserting gain , and amount by striking the amount of gain each place it appears and inserting the amount , and in subsection (e)(1), by inserting qualifying ordinary income and after investments of . The amendments made by this section shall apply to amounts invested after the date of the enactment of this Act.