Representative Greg Steube (R-FL) is introducing a bipartisan bill expanding opportunities for communities to redevelop former military installations.
Context for What the Bill Does
The Base Realignment and Closure (BRAC) Commission oversees the closure and reorganization of military bases throughout the United States, which has occurred five times since 1988. Base closures have resulted in economic downturns in many surrounding communities, leading to job losses and reduced tax revenue.
In 2017, the Tax Cuts and Jobs Act (TCJA) created Qualified Opportunity Zones (QOZs), which are areas designated by the state and verified by the Treasury as underutilized or economically distressed.
Investors are incentivized to reinvest capital gains from highly appreciated assets, thereby revivifying these communities economically.
Rep. Steube's Increasing Opportunity for Reindustrialization Act expands the QOZ designation to include BRAC sites without counting them against the current cap on eligible Opportunity Zone tracts.
What Steube Saying
"As the only active-duty veteran in the House Republican Conference serving on Ways and Means, I've seen firsthand what these communities give to our national defense, and I know what it takes to help them rebuild when a base closes," said Rep. Steube in his press release, adding, "This bill gives states a tool to attract private investment into these communities without taking opportunity away from any other zone already on the map."
Joining Rep. Steube in the House is Representative Mike Thompson (D-CA), while Senators Dave McCormick (R-PA) and Brian Schatz (D-HI) are introducing the Senate companion bill.
Similar Legislation
In March, former Representative Sheila Cherfilus-McCormick (D-FL) introduced the Housing Opportunity Act, which expands the designation of QOZs from 10 years to 20 years, increasing the certainty of long-term investment.
Specifically, the election period for deferred capital gains, which allows investors to defer paying taxes on money invested in qualified opportunity funds, will be extended from the end of 2026 to the end of 2036.
Moreover, provisions related most directly to housing include enhanced incentives for residential rental projects that meet income-qualified occupancy requirements for individuals earning 100 percent or less of the area median income (AMI) and rules on rent increases and tenant protections in residential properties within qualified opportunity zones.
