Section 1 Short title
This Act may be cited as the “Opportunity Zone Lead Remediation Impact Act of 2019”.
Opportunity Zone Lead Remediation Impact Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to require lead remediation for qualified opportunity zone property originally constructed before January 1, 1978.
Sec. 2 Lead remediation requirements for qualified opportunity funds
Lead remediation requirements for pre-1978 property— Section 1400Z–2(d)(2)(D) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:
“(iv) Lead remediation requirements for pre-1978 property—For purposes of subparagraph (A)(ii), no residential property originally constructed before January 1, 1978, shall be treated as substantially improved by the qualified opportunity zone fund unless, after improvement—
“(I) such property contains no painted surfaces that exceed the levels described in section 302(c) of the Lead-Based Paint Poisoning and Prevention Act, and
“(II) any pipes and fixtures of such property are lead free (as such term is defined in section 1417 of the Safe Water Drinking Act).”
Donation of opportunity fund assets— Section 1400Z–2(d)(1) Internal Revenue Code of 1986 is amended by striking “that holds” and all that following through the period at the end and inserting the following:
“(A) holds at least 88 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—
“(i) on the last day of the first 6-month period of the taxable year of the fund, and
“(ii) on the last day of the taxable year of the fund, and
“(B) donates not less than 2 percent of amounts invested in such fund for use for remediation of lead hazards in paint, dust, soil, and drinking water in residential properties, nonresidential buildings housing child care facilities (within the meaning of section 305 of the Toxic Substances Control Act), or school facilities (within the meaning of section 501 of such Act) in a qualified opportunity zone.”
Effective date— The amendments made by this Act shall apply to capital gains realized in taxable years beginning after the date of the enactment of this Act.