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The comprehensive tax package passed by the Republican-controlled U.S. House of Representatives includes a renewal and extension of the Opportunity Zone tax incentive (OZs). Don’t miss your opportunity to tell Congress to prioritize transparency and affordability in an extension of the OZ program!

The Opportunity Zones tax incentive is a tool designed to catalyze investment and growth in distressed communities. The tool operates by providing a set of preferential tax treatments to entities that invest capital gains into qualifying investments in underinvested or otherwise distressed communities. The OZ program was created in the 2017 Tax Cuts and Jobs Act and was set to sunset at the end of 2026. Generally, it has driven a new wave of investment in communities across the country, with a notable impact on housing production. If extended, we are eager to see the program become more transparent and more impact-focused by further focusing the tool on much-needed affordable housing production.

The version of the comprehensive tax legislation recently passed by the U.S. House of Representatives included an extension of the Opportunity Zone tax incentive (OZs). The current bill extends the period of time the incentive can be utilized to 2033, calls for a refreshed list of eligible Opportunity Zones, and adds new reporting requirements. While the inclusion of reporting requirements is a positive step, they are not guaranteed to be included in the final bill, and no additional incentives were provided that would steer investment towards the development of affordable housing.

Take action and advocate for transparency and affordability in the OZ program!

Smart Growth America and a coalition of impact-focused partners have previously urged Congress to strengthen the Opportunity Zone incentive to better support the use of OZs to deliver high-impact projects such as affordable housing, and include reporting requirements in an extension. Previous assessments of residential units built with OZ capital show that the incentive has rarely been used for the creation of explicitly affordable units. To meet the urgent need for more affordable housing, OZ incentives must better align with the needs of the communities they are intended to serve. That’s why we’re calling for increased benefits for developers who build housing that is affordable to people earning less than the area median income—so that the incentives are targeted where the need is greatest.

Help us strengthen the impact and transparency of the Opportunity Zone program! We need your help to build support for reforms to the Opportunity Zone program, reforms that will spur the creation of affordable housing and protect the currently included reporting requirements. Whether you’re an individual, business, or organization, your advocacy is crucial.

Take action today:

• Contact your representatives and urge them to advocate for the inclusion of an affordable housing incentive and reporting requirements in any extension of the Opportunity Zones program.
• Spread the word—share this post and engage your networks in this critical effort.

Together, we can push Congress to create a more transparent, impact-focused Opportunity Zone incentive.