# 119-hr-2292: Economic Opportunity for Distressed Communities Act

119-hr-2292, Economic Opportunity for Distressed Communities Act, is a 119th Congress bill sponsored by Rep. Edwards, Chuck [R-NC-11] (R-NC); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2292
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2292
- Congress: 119
- Title: Economic Opportunity for Distressed Communities Act
- Status: introduced
- Introduced: 2025-03-24
- Sponsor: Rep. Edwards, Chuck [R-NC-11] (R-NC)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Preferential tax treatment for capital gains invested in contaminated brownfields.** This bill would create Section 1400Z-3 to let taxpayers elect special exclusions and deferrals when they invest capital gains into Qualified Distressed Opportunity Funds (QDOFs). - Investors would be allowed to exclude from gross income an amount up to what they invest in a QDOF during a 180-day window. Deferred gain would be includable on sale or by December 31, 2033, and basis step-ups apply: +10% after 5 years, +5% after 7 years, and a full fair market value basis after 10 years. - Distressed communities would see targeted capital directed to DOZ property defined to include brownfield sites and facilities listed on the EPA National Priorities List. Qualified DOZ property must generally be original-issue stock, partnership interests, or tangible property placed in service or substantially improved by the fund and used mainly in the DOZ. - QDOFs would face strict rules and oversight. Funds must hold at least 90% of assets in DOZ property or face a monthly penalty tied to the underpayment rate, and the bill adds related-party limits and certification authority to curb abuse.

## Cosponsors (1)

- Rep. Crockett, Jasmine [D-TX-30] (D-TX), 2025-03-24T00:00:00.000Z

## Provisions PRIA read

- Tax breaks for distressed-zone investors: benefit, high. If enacted, you could defer tax on a capital gain by investing in a Qualified Distressed Opportunity Fund within 180 days after selling to an unrelated person. You could exclude up to the amount you invest, then include the deferred gain when you sell the fund investment or on December 31, 2033, wh…
- Penalties and oversight for zone funds: cost, medium. If enacted, a fund that holds less than 90% eligible property would owe a monthly penalty. The penalty would equal the shortfall times the IRS underpayment rate for that month, and partners would bear their share in a partnership fund. No penalty would apply if the fund shows reasonable cause. Trea…
- How estates report deferred gains: cost, low. If enacted, when someone who used these deferral rules dies, amounts not on their final return would be handled under section 691. That means the estate or beneficiaries would include this income under the usual rules for income in respect of a decedent.
- Rules for funds and zone property: mixed, medium. If enacted, a fund would qualify only if it keeps at least 90% of assets in distressed‑zone property, averaged at mid‑year and year‑end. Eligible assets would include stock or partnership interests bought for cash after December 31, 2025, from businesses that operate as distressed‑zone businesses.…

## Related bills

- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-4669: FEMA Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-1065: Protect Our Letter Carriers Act of 2025
- 119-hr-2189: To modernize Federal firearms laws to account for advancements in technology and less-than-lethal weapons, and for other purposes.

## Sources
- [119-hr-2292 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2292)

## Related
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-1065: Protect Our Letter Carriers Act of 2025](https://policyrisk.com/legislation/119-hr-1065)
- [119-hr-2189: To modernize Federal firearms laws to account for advancements in technology an…](https://policyrisk.com/legislation/119-hr-2189)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2292 (as of 2025-12-21).