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HR 10006

Increasing Opportunity For Reindustrialization Act

119th Congress Introduced by Greg Steube and 1 co-sponsor

Expands QOZ eligibility to include census tracts with any portion of former DoD BRAC-closed installations, widening zones for investment incentives.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 10006

Overview

  • Bill: HR 10006
  • Session: 119th Congress, 2nd Session
  • Title: Increasing Opportunity For Reindustrialization Act
  • Purpose: To amend the Internal Revenue Code to expand eligibility for Qualified Opportunity Zones (QOZs) by allowing certain population census tracts that contain former military installations to be designated as QOZs.

Main Purpose and Intent

  • The bill aims to promote investment and redevelopment in areas that include former military installations by expanding the set of census tracts that can be designated as Qualified Opportunity Zones.
  • Specifically, it adds eligibility for census tracts that contain any portion of a former Department of Defense installation, facility, or entity closed under a base realignment and closure (BRAC) process.

Key Provisions and Changes

  1. Eligibility Criterion Expanded

    • Amends Section 1400Z-1(c)(1) of the Internal Revenue Code.
    • Adds a new subparagraph (C) allowing a population census tract to be designated as a QOZ if it contains any portion of a former DoD installation, facility, or entity closed through BRAC.

  2. Special Rule for Designations (Exemption from Normal Limitation)

    • Amends Section 1400Z-1(d) to add a new subparagraph (3), establishing a special rule for these BRAC-related tracts.
    • Subparagraph (A): A census tract described in the new (c)(1)(C) and that does not meet other standard QOZ requirements would not be treated as a low-income community for purposes of the QOZ designation.
    • Subparagraph (B): The number of census tracts in a state that may be designated as QOZs during any designation period is increased by the number of BRAC-related tracts described in (c)(1)(C) that are nominated for designation in that period.

  3. Effective Date

    • The amendments apply to areas designated under Section 1400Z-1 after the enactment date of this Act.

Who Would Be Affected

  • Geographic areas: Population census tracts that contain any portion of former DoD installations/ BRAC-closed facilities/entities.
  • States: Potentially increased pool of tracts that can be designated as QOZs, subject to nomination and designation processes.
  • Investors and developers: Expanded opportunities for investment incentives in redeveloped or revitalized BRAC-affected areas.

Procedural and Timeline Highlights

  • Introduction date: July 30, 2026.
  • Referral: Committee on Ways and Means (House).
  • Effective date: Prospective, applying to QOZ designations made after enactment.

Potential Impacts and Considerations

  • Economic Development: By expanding eligible tracts, BRAC-impacted communities may access QOZ benefits (capital gains tax incentives for investments in designated zones), potentially accelerating redevelopment and job creation.
  • Administrative: States and localities may need to identify BRAC-related tracts and coordinate with the designation process to nominate additional zones.
  • Policy Implications: The bill creates a targeted expansion to address reindustrialization needs in communities transitioning from military use to civilian economic activity.

If you’d like, I can provide a side-by-side comparison of current QOZ rules versus the proposed changes, or a brief FAQ outlining common questions about QOZ designation and the BRAC eligibility.

Compiled from official sources — confirm details with the bill’s official record.

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