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H.R. 4177House117th Congress (2021-2023)In Committee

Expanding Opportunity Zones Act of 2021

Sponsored by Jim HagedornRep. Jim Hagedorn (R-MN)
Introduced June 25, 2021

AI-Generated Summary

Updated February 8, 2026 at 4:57 AM UTC

The Expanding Opportunity Zones Act of 2021 changes the tax code to increase the share of low‑income areas that can be designated as qualified opportunity zones and pushes back key deadlines for investors. It raises the percentage of eligible zones from 25% to 30% and extends the election and gain‑deferral periods from the end of 2026 to the end of 2029. The changes affect taxpayers who invest in opportunity zones and the communities those zones cover.

Key Provisions

  • Increase the maximum share of qualified designated opportunity zones from 25% to 30% of eligible low‑income census tracts.
  • Extend the period for determining qualified opportunity zones by updating the reference to this Act.
  • Move the election deadline for investors from December 31, 2026 to December 31, 2029.
  • Extend the deadline for deferring gains on investments in opportunity zones from December 31, 2026 to December 31, 2029.
  • Make all amendments effective on the date the Act is enacted.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 25, 2021

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HouseIntro Referral

Introduced in House

June 25, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 25, 2021

Bill Text

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Introduced in HouseIssued June 25, 2021

I

117th CONGRESS

1st Session

H. R. 4177

IN THE HOUSE OF REPRESENTATIVES

June 25, 2021

Mr. Hagedorn (for himself, Mr. Balderson, Mrs. Hinson, and Mr. Duncan) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the number of designated qualified opportunity zones, to extend the periods of election and deferral with regard to such zones, and for other purposes.

1.

Short title

This Act may be cited as the Expanding Opportunity Zones Act of 2021.

2.

Opportunity zones

(a)

Increase to number of qualified designated opportunity zones

(1)

In general

Section 1400Z–1(d)(1) of the Internal Revenue Code of 1986 is amended by striking 25 percent and inserting 30 percent.

(2)

Exception

Section 1400Z–1(d)(2) of such Code is amended by striking 25 and inserting 30.

(b)

Extension of determination period

Section 1400Z–1(c)(2)(B) of such Code is amended by striking Tax Cuts and Jobs Act and inserting Expanding Opportunity Zones Act of 2021.

(c)

Extension of election period

Section 1400Z–2(a)(2)(B) of such Code is amended by striking December 31, 2026. and inserting December 31, 2029..

(d)

Extension of deferral of gain invested

Section 1400Z–2(b)(1)(B) of such Code is amended by striking December 31, 2026. and inserting December 31, 2029.

(e)

Effective date

The amendments made by this Act shall take effect on the date of the enactment of this Act.