# 119-hr-3687: To amend the Internal Revenue Code of 1986 to renew and enhance opportunity zones, and for other purposes.

119-hr-3687, To amend the Internal Revenue Code of 1986 to renew and enhance opportunity zones, and for other purposes., is a 119th Congress bill sponsored by Rep. Kelly, Mike [R-PA-16] (R-PA); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-3687
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3687
- Congress: 119
- Title: To amend the Internal Revenue Code of 1986 to renew and enhance opportunity zones, and for other purposes.
- Status: introduced
- Introduced: 2025-06-03
- Sponsor: Rep. Kelly, Mike [R-PA-16] (R-PA)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Refocus Qualified Opportunity Zones toward rural areas and impose strict fund reporting.** This bill would redefine which census tracts qualify, create a new rural-focused designation round, boost tax basis incentives for rural-targeted funds, and require annual electronic reporting by funds. - Would change basis step-up rules for investments made after Dec. 31, 2026: a 5-year holding increases basis by 10% and a Qualified Rural Opportunity Fund would get a 30% basis boost. - Would authorize a new designation round allowing up to 25% of a State's low-income communities to be designated as Qualified Opportunity Zones from Jan 1, 2027 through Dec. 31, 2033, and disqualify tracts with median family income at least 125% of the area median. - Would require every Qualified Opportunity Fund to file an annual electronic return with asset, investment, location, and employment details, and sets penalties at $500 per day capped at $10,000 for failures with higher caps for large funds or intentional disregard.

## Provisions PRIA read

- Investor basis boost and deferral: benefit, high. If enacted, investors would get bigger tax breaks and more timing flexibility for Opportunity Zone investments. For investments made after Dec 31, 2026, holding at least five years would increase your basis by 10% of the gain you deferred. If the investment is in a qualified rural opportunity fund,…
- Annual reporting and penalties for funds: cost, medium. If enacted, every qualified Opportunity Fund and qualified rural fund would file an annual machine-readable return with detailed investment, tract, asset, and employment data. Funds must give written statements to people who sold investments. Applicable businesses must give information to funds so…
- Tighter low-income tract rules: cost, medium. If enacted, the bill would tighten what counts as a "low-income community" for Opportunity Zone designation. It would use 70% (not 80%) in one income test and disqualify any tract whose median family income is at least 125% of the state or metro median. Fewer tracts could qualify for designation un…
- New rural opportunity zone rules: mixed, medium. If enacted, the bill would add a new Opportunity Zone designation round from Jan 1, 2027 through Dec 31, 2033 that prioritizes rural tracts. A new "qualified rural opportunity fund" definition would require at least 90% of fund assets in rural QOZ property for investments after Dec 31, 2026. Owners…

## Related bills

- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-4393: DIGNIDAD (Dignity) Act of 2025
- 119-hr-137: TCJA Permanency Act
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-3132: CHOICE for Veterans Act of 2025
- 119-hr-10370: Ailani Myers Accelerating Innovation in Medicine to Cure Kids with Cancer Act

## Sources
- [119-hr-3687 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3687)

## Related
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-4393: DIGNIDAD (Dignity) Act of 2025](https://policyrisk.com/legislation/119-hr-4393)
- [119-hr-137: TCJA Permanency Act](https://policyrisk.com/legislation/119-hr-137)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-3132: CHOICE for Veterans Act of 2025](https://policyrisk.com/legislation/119-hr-3132)
- [119-hr-10370: Ailani Myers Accelerating Innovation in Medicine to Cure Kids with Cancer Act](https://policyrisk.com/legislation/119-hr-10370)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3687 (as of 2026-04-21).