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Tax Breaks for Capital Investment in Rural Opportunity Zones.

This law establishes new tax rules allowing investors to defer paying capital gains tax if they reinvest those gains into specialized funds targeting economic development in designated, persistently poor rural areas. The goal is to channel private capital into rural regions facing long-term poverty, potentially creating new jobs and improving local infrastructure. The program applies to investments made until the end of 2032.
Key points
Investors can defer capital gains tax by reinvesting profits into Qualified Rural Opportunity Funds (QROFs) within 180 days of the asset sale.
If the investment in the rural zone is held for at least 10 years, the appreciation (profit) from the sale of that investment becomes entirely tax-free.
The program targets specific census tracts in rural counties defined by persistent poverty levels.
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Additional Information
Print number: 118_HR_3906
Sponsor: Rep. Ferguson, A. Drew, IV [R-GA-3]
Process start date: 2023-06-07
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rural Opportunity Zone and Investment Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3906.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-06-07.

What are the main provisions?

Key points include:

  • Investors can defer capital gains tax by reinvesting profits into Qualified Rural Opportunity Funds (QROFs) within 180 days of the asset sale.
  • If the investment in the rural zone is held for at least 10 years, the appreciation (profit) from the sale of that investment becomes entirely tax-free.
  • The program targets specific census tracts in rural counties defined by persistent poverty levels.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Ferguson, A. Drew, IV [R-GA-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy Public Investments