United States 119th Congress Status: In Committee 1 R cosponsors

HR 3687 — To amend the Internal Revenue Code of 1986 to renew and enhance opportunity zones, and for other purposes.

Last action — Referred to the House Committee on Ways and Means.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced June 03, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Prognosis

Stalled 16% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill updates the definition and investment incentives for opportunity zones in the tax code.

This bill modifies the criteria for defining low-income communities and establishes new processes for designating qualified opportunity zones. It also enhances investment incentives, particularly for rural areas, while extending the designation period until 2033.

What this means for you
  • Environment: Investments in rural opportunity zones may include projects that could impact environmental factors.
  • Small Business: This bill may create more opportunities for small businesses in newly designated opportunity zones.

Bill Text

Sections of law this bill changes

4 sections in 3 laws

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).

Normal taxes and surtaxes · 26 U.S.C. ch. 1 2 sections
  • § 1400Z-1 Designation Amends

    26 U.S.C. § 1400Z-1 — at 1400Z-1(c)(1)

    The law today

    (a) Qualified opportunity zone defined 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. (b) Designation (1) In general 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. (2) Extension of periods 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),1 for an additional 30 days. (3) Special rule for Puerto Rico 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. (c) Other definitions For purposes of this section— (1) Low-income communities The term “low-income community” means any population census tract if— (A) such population census tract has a median family income that— (i) in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or (ii) in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or (B) such population census tract— (i) has a poverty rate of at least 20 percent, and (ii) has a median family income that— (I) in the case of a population census tract not located within a metropolitan area, does not exceed 125 percent of the statewide median family income, or (II) in the case of a population census tract located within a metropolitan area, does not exceed 125 percent of the metropolitan area median family income. (2) Definition of periods (A) Consideration period 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). (B) Determination period The term “determination period” means the 90-day period beginning on the decennial determination date, as extended under subsection (b)(2). (C) Decennial determination date The term “decennial determination date” means— (i) July 1, 2026, and (ii) each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph. (3) State For purposes of this section, the term “State” includes any possession of the United States. (d) Number of designations (1) In general Except as provided by paragraph (2), the number of population census tracts in a State that may be designated as qualified opportunity zones under this section during any period may not exceed 25 percent of the number of low-income communities in the State. (2) Exception 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 during any period. (e) Period for which designation is in effect (1) In general A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. (2) Applicable start date For purposes of this section, the term “applicable start date” means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was ...

    17 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 1400Z-2 Special rules for capital gains invested in opportunity zones Amends

    26 U.S.C. § 1400Z-2 — at 1400Z-2(a)(2)(B), 1400Z-2(b)(1)(B), and 1400Z-2(b)(2)(B)

    The law today

    (a) In general (1) Treatment of gains In the case of gain from the sale to, or exchange with, an unrelated person of any property held by the taxpayer, at the election of the taxpayer— (A) 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, (B) the amount of gain excluded by subparagraph (A) shall be included in gross income as provided by subsection (b), and (C) subsection (c) shall apply. (2) Election No election may be made under paragraph (1)— (A) with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect, or (B) with respect to any sale or exchange after December 31, 2026. (b) Deferral of gain invested in opportunity zone property (1) Year of inclusion Gain to which subsection (a)(1)(B) applies shall be included in income in the taxable year which includes the earlier of— (A) the date on which such investment is sold or exchanged, or (B) December 31, 2026. (2) Amount includible (A) In general The amount of gain included in gross income under subsection (a)(1)(A) shall be the excess of— (i) the lesser of the amount of gain excluded under paragraph (1) or the fair market value of the investment as determined as of the date described in paragraph (1), over (ii) the taxpayer’s basis in the investment. (B) Determination of basis (i) In general Except as otherwise provided in this clause or subsection (c), the taxpayer’s basis in the investment shall be zero. (ii) Increase for gain recognized under subsection (a)(1)(B) The basis in the investment shall be increased by the amount of gain recognized by reason of subsection (a)(1)(B) with respect to such property. (iii) Investments held for 5 years In the case of any investment held for at least 5 years, the basis of such investment shall be increased by an amount equal to 10 percent of the amount of gain deferred by reason of subsection (a)(1)(A). (iv) Investments held for 7 years In the case of any investment held by the taxpayer for at least 7 years, in addition to any adjustment made under clause (iii), the basis of such property shall be increased by an amount equal to 5 percent of the amount of gain deferred by reason of subsection (a)(1)(A). (c) Special rule for investments held for at least 10 years In the case of any investment held by the taxpayer for at least 10 years and with respect to which the taxpayer makes an election under this clause, the basis of such property shall be equal to the fair market value of such investment on the date that the investment is sold or exchanged. (d) Qualified opportunity fund For purposes of this section— (1) In general The term “qualified opportunity fund” means any investment vehicle which is organized as a corporation or a partnership for the purpose of investing in qualified opportunity zone property (other than another qualified opportunity fund) that holds at least 90 percent of its assets in qualified opportunity zone property, determined by the average of the percentage of qualified opportunity zone property held in the fund as measured— (A) on the last day of the first 6-month period of the taxable year of the fund, and (B) on the last day of the taxable year of the fund. (2) Qualified opportunity zone property (A) In general The term “qualified opportunity zone property” means property which is— (i) qualified opportunity zone stock, (ii) qualified opportunity zone partnership interest, or (iii) qualified opportunity zone business property. (B) Qualified opportunity zone stock (i) In general Except as provided in clause (ii), the term “qualified opportunity zone stock” means any stock in a domestic corporation if— (I) such stock is acquired by the qualified opportunity fund after December 31, 2017, at its original issue (directly or through an underwriter) from the corporation s...

    13 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Information and returns · 26 U.S.C. ch. 61 1 section
  • § 6011 General requirement of return, statement, or list Amends

    26 U.S.C. § 6011 — at 6011(e)

    The law today

    (a) General rule When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations. (b) Identification of taxpayer The Secretary is authorized to require such information with respect to persons subject to the taxes imposed by chapter 21 or chapter 24 as is necessary or helpful in securing proper identification of such persons. (c) Returns, etc., of DISCS and former DISCS and former FSC’s (1) Records and information A DISC, former DISC, or former FSC (as defined in section 922 as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000) shall for the taxable year— (A) furnish such information to persons who were shareholders at any time during such taxable year, and to the Secretary, and (B) keep such records, as may be required by regulations prescribed by the Secretary. (2) Returns A DISC shall file for the taxable year such returns as may be prescribed by the Secretary by forms or regulations. (d) Authority to require information concerning section 912 allowances The Secretary may by regulations require any individual who receives allowances which are excluded from gross income under section 912 for any taxable year to include on his return of the taxes imposed by subtitle A for such taxable year such information with respect to the amount and type of such allowances as the Secretary determines to be appropriate. (e) Regulations requiring returns on magnetic media, etc. (1) In general The Secretary shall prescribe regulations providing standards for determining which returns must be filed on magnetic media or in other machine-readable form. Except as provided in paragraph (3), the Secretary may not require returns of any tax imposed by subtitle A on individuals, estates, and trusts to be other than on paper forms supplied by the Secretary. (2) Requirements of regulations In prescribing regulations under paragraph (1), the Secretary— (A) shall not require any person to file returns on magnetic media unless such person is required to file at least the applicable number of returns during the calendar year, and (B) shall take into account (among other relevant factors) the ability of the taxpayer to comply at reasonable cost with the requirements of such regulations. (3) Special rule for tax return preparers (A) In general The Secretary shall require that any individual income tax return prepared by a tax return preparer be filed on magnetic media if— (i) such return is filed by such tax return preparer, and (ii) such tax return preparer is a specified tax return preparer for the calendar year during which such return is filed. (B) Specified tax return preparer For purposes of this paragraph, the term “specified tax return preparer” means, with respect to any calendar year, any tax return preparer unless such preparer reasonably expects to file 10 or fewer individual income tax returns during such calendar year. (C) Individual income tax return For purposes of this paragraph, the term “individual income tax return” means any return of the tax imposed by subtitle A on individuals, estates, or trusts. (D) Exception for certain preparers located in areas without internet access The Secretary may waive the requirement of subparagraph (A) if the Secretary determines, on the basis of an application by the tax return preparer, that the preparer cannot meet such requirement by reason of being located in a geographic area which does not have access to internet service (other than dial-up or satellite service). (4) Special rule for returns filed by financial institutions with respect to withholding on foreign transfers The numerical limitation under paragraph (2)(A) shall not apply...

    25 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Additions to the tax, additional amounts, and assessable penalties · 26 U.S.C. ch. 68 1 section
  • § 6724 Waiver; definitions and special rules Amends

    26 U.S.C. § 6724 — at 6724(d)(2)

    The law today

    (a) Reasonable cause waiver No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect. (b) Payment of penalty Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax. (c) Special rule for failure to meet magnetic media requirements No penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than the applicable number (determined under section 6011(e)(5) with respect to the calendar year to which such returns relate) of information returns or with respect to a return described in section 6011(e)(4). (d) Definitions For purposes of this part— (1) Information return The term “information return” means— (A) any statement of the amount of payments to another person required by— (i) section 6041(a) or (b) (relating to certain information at source), (ii) section 6042(a)(1) (relating to payments of dividends), (iii) section 6044(a)(1) (relating to payments of patronage dividends), (iv) section 6049(a) (relating to payments of interest), (v) section 6050A(a) (relating to reporting requirements of certain fishing boat operators), (vi) section 6050N(a) (relating to payments of royalties), (vii) section 6051(d) (relating to information returns with respect to income tax withheld), (viii) section 6050R (relating to returns relating to certain purchases of fish), or (ix) section 110(d) (relating to qualified lessee construction allowances for short-term leases), (B) any return required by— (i) section 6041A(a) or (b) (relating to returns of direct sellers), (ii) section 6043A(a) (relating to returns relating to taxable mergers and acquisitions), (iii) section 6045(a) or (d) (relating to returns of brokers), (iv) section 6045B(a) (relating to returns relating to actions affecting basis of specified securities), (v) section 6050H(a) or (h)(1) (relating to mortgage interest received in trade or business from individuals), (vi) section 6050I(a) or (g)(1) (relating to cash received in trade or business, etc.), (vii) section 6050J(a) (relating to foreclosures and abandonments of security), (viii) section 6050K(a) (relating to exchanges of certain partnership interests), (ix) section 6050L(a) (relating to returns relating to certain dispositions of donated property), (x) section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities), (xi) section 6050Q (relating to certain long-term care benefits), (xii) section 6050S (relating to returns relating to payments for qualified tuition and related expenses), (xiii) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals), (xiv) section 6052(a) (relating to reporting payment of wages in the form of group-life insurance), (xv) section 6050V (relating to returns relating to applicable insurance contracts in which certain exempt organizations hold interests), (xvi) section 6053(c)(1) (relating to reporting with respect to certain tips), (xvii) subsection (b) or (e) of section 1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions), (xviii) section 4101(d) (relating to information reporting with respect to fuels taxes), (xix) subparagraph (C) of section 338(h)(10) (relating to information required to be furnished to the Secretary in case of elective recognition of gain or loss), (xx) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), (xxi) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), (xxii) section 6039(a) (relating to returns required with respect to certain options), (xxiii) section 6050W (re...

    55 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill modifies the definition and eligibility criteria for low-income communities in opportunity zones, establishes new designations for additional opportunity zones, and updates investment incentives to improve them, particularly for rural areas.

  • Section 1400Z-1(c)(1)

    communities.--The term → communities.-- “(A) In general.--The term

    Redefines how low-income communities are identified and adds new criteria for eligibility.

  • Section 1400Z-1(c)(1)

    (B) Modifications.--For purposes of subparagraph (A), section 45D(e)(1) shall be applied in subparagraph (B) thereof, by substituting '70 percent' for '80 percent' each place it appears.

    Changes the threshold for certain income calculations from 80 percent to 70 percent.

  • Section 1400Z-1(c)(1)

    (C) Certain census tracts disallowed.--The term 'low-income community' shall not include any population census tract if-- (i) in the case of a tract not located within a metropolitan area, the median family income for such tract is at least 125 percent of statewide median family income, or (ii) in the case of a tract located within a metropolitan area, the median family income for such tract is at least 125 percent of the metropolitan area median family income.

    Excludes certain high-income census tracts from being designated as low-income communities.

  • Section 1400Z-1

    (g) New Round of Qualified Opportunity Zone Designations.-- (1) In general.--In addition to designations under subsection (b), and under rules similar to the rules of such subsection, the Secretary shall designate tracts nominated by the chief executive officers of States for purposes of this section.

    Establishes a new process for designating additional opportunity zones nominated by state executives.

  • Section 1400Z-1(g)(2)(A)

    Of the low-income communities within a State, the Secretary may designate under this subsection not more than 25 percent as qualified opportunity zones, of which at least the lesser of the following shall be qualified opportunity zones which are comprised entirely of a rural area: ...

    Limits the proportion of low-income communities designated as opportunity zones, ensuring a focus on rural areas.

  • Section 1400Z-2(a)(2)(B)

    December 31, 2026 → December 31, 2033

    Extends the deadline for investments in qualified opportunity zones by seven years.

  • Section 1400Z-2(b)(1)(B)

    (B)(i) December 31, 2026, in the case of an amount invested before January 1, 2027, and (ii) December 31, 2033, in the case of an amount invested after December 31, 2026, and before January 1, 2034.

    Clarifies the inclusion year for investments based on their timing.

  • Section 1400Z-2(b)(2)(B)

    (v) Consolidated basis increase for investments after 2026.--In the case of investments made after December 31, 2026-- (I) clauses (iii) and (iv) shall not apply, and (II) for any such investment held by the taxpayer for at least 5 years, the basis of such adjustment shall be increased by an amount equal to 10 percent of the amount of gain deferred by reason of subsection (a)(1)(A).

    Establishes a new basis adjustment incentive for investments made after 2026.

  • Section 1400Z-2(d)(2)(D)(ii)

    (50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area)

    Increases the basis adjustment for property improvements in rural opportunity zones.

  • Subpart A of part III of subchapter A of chapter 61

    SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS.

    Introduces new reporting requirements for qualified opportunity funds.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Ways and Means.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

Show all 546 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

public-safety taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HR 3687?
HR 3687 is sponsored by Kelly, Mike (Republican).
What is the current status of HR 3687?
This bill is in committee in the House. Introduced June 03, 2025. It must pass committee before a floor vote.
Where can I track HR 3687?
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