H.R.2292 - Economic Opportunity for Distressed Communities Act (119th Congress)
Summary
H.R.2292, the Economic Opportunity for Distressed Communities Act, aims to incentivize investment in brownfield and superfund sites by amending the Internal Revenue Code of 1986. The bill introduces special rules for capital gains invested in these distressed opportunity zones, offering tax benefits for investments held for specific periods. This includes deferral of gains, basis increases for longer-term investments, and potential exclusion of gains for investments held for at least 10 years.
Expected Effects
The bill seeks to stimulate economic activity and revitalization in economically challenged areas by attracting private capital. By providing tax incentives, it encourages investors to direct funds towards the cleanup and redevelopment of brownfield and superfund sites. This could lead to job creation, environmental remediation, and improved property values in these communities.
Potential Benefits
- Encourages investment in distressed communities, leading to revitalization.
- Creates job opportunities in construction, environmental remediation, and related industries.
- Provides tax incentives for long-term investments, fostering stability.
- Facilitates the cleanup of environmentally hazardous sites, improving public health.
- Potentially increases property values and expands the tax base in distressed areas.
Potential Disadvantages
- Tax incentives could disproportionately benefit wealthy investors.
- Potential for misuse of the program if not properly regulated.
- May not address the underlying issues causing distress in these communities.
- The focus on capital gains may exclude other forms of investment.
- The sunset date of 2033 may limit long-term impact.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill uses tax incentives to promote economic development, which can be argued as promoting the general welfare. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).