1. Short title
This Act may be cited as the “Community Development in Opportunity Zones Act of 2020”.
Community Development in Opportunity Zones Act of 2020
A BILL
To amend the Internal Revenue Code of 1986 to allow qualified opportunity funds to invest in community development financial institutions.
2. Qualified opportunity fund investments in community development financial institutions
In general— Section 1400Z–2(d)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
“(C) Special rule for community development financial institutions—The term “qualified opportunity zone business” shall include any community development financial institution (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)) if, during substantially all the qualified opportunity fund’s holding period for its investment in such community development financial institution, the average of the aggregate amount of investment, and principal amount of loans, provided by such community development financial institution to qualified opportunity zone businesses (other than community development financial institutions) or residents of qualified opportunity zones is not less than such investment.”
Effective date— The amendment made by this section shall take effect on the date of the enactment of this Act.