§6039K. Returns with respect to qualified opportunity funds and qualified rural opportunity funds

(a) In general

Every qualified opportunity fund shall file an annual return (at such time and in such manner as the Secretary may prescribe) containing the information described in subsection (b).

(b) Information from qualified opportunity funds

The information described in this subsection is-

(1) the name, address, and taxpayer identification number of the qualified opportunity fund,

(2) whether the qualified opportunity fund is organized as a corporation or a partnership,

(3) the value of the total assets held by the qualified opportunity fund as of each date described in section 1400Z–2(d)(1),

(4) the value of all qualified opportunity zone property held by the qualified opportunity fund on each such date,

(5) with respect to each investment held by the qualified opportunity fund in qualified opportunity zone stock or a qualified opportunity zone partnership interest-

(A) the name, address, and taxpayer identification number of the corporation in which such stock is held or the partnership in which such interest is held, as the case may be,

(B) each North American Industry Classification System (NAICS) code that applies to the trades or businesses conducted by such corporation or partnership,

(C) the population census tract or population census tracts in which the qualified opportunity zone business property of such corporation or partnership is located,

(D) the amount of the investment in such stock or partnership interest as of each date described in section 1400Z–2(d)(1),

(E) the value of tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership,

(F) the value of tangible property held by such corporation or partnership on each such date which is leased by such corporation or partnership,

(G) the approximate number of residential units (if any) for any real property held by such corporation or partnership, and

(H) the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such corporation or partnership as determined appropriate by the Secretary,

(6) with respect to the items of qualified opportunity zone business property held by the qualified opportunity fund-

(A) the North American Industry Classification System (NAICS) code that applies to the trades or businesses in which such property is held,

(B) the population census tract in which the property is located,

(C) whether the property is owned or leased,

(D) the aggregate value of the items of qualified opportunity zone property held by the qualified opportunity fund as of each date described in section 1400Z–2(d)(1), and

(E) in the case of real property, the number of residential units (if any),

(7) the approximate average monthly number of full-time equivalent employees for the year of the trades or businesses of the qualified opportunity fund in which qualified opportunity zone business property is held (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such trades or businesses as determined appropriate by the Secretary,

(8) with respect to each person who disposed of an investment in the qualified opportunity fund during the year-

(A) the name, address, and taxpayer identification number of such person,

(B) the date or dates on which the investment disposed was acquired, and

(C) the date or dates on which any such investment was disposed and the amount of the investment disposed, and

(9) such other information as the Secretary may require.

(c) Statement required to be furnished to investors

Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return by reason of subsection (b)(8) (at such time and in such manner as the Secretary may prescribe) a written statement showing-

(1) the name, address, and phone number of the information contact of the person required to make such return, and

(2) the information required to be shown on such return by reason of subsection (b)(8) with respect to the person whose name is required to be so set forth.

(d) Definitions

For purposes of this section-

(1) In general

Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter.

(2) Full-time equivalent employees

The term "full-time equivalent employees" means, with respect to any month, the sum of-

(A) the number of full-time employees (as defined in section 4980H(c)(4)) for the month, plus

(B) the number of employees determined (under rules similar to the rules of section 4980H(c)(2)(E)) by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120.

(e) Application to qualified rural opportunity funds

Every qualified rural opportunity fund (as defined in section 1400Z–2(b)(2)(C)) shall file the annual return required under subsection (a), and the statements required under subsection (c), applied-

(1) by substituting "qualified rural opportunity" for "qualified opportunity" each place it appears,

(2) by substituting "section 1400Z–2(b)(2)(C)" for "section 1400Z–2(d)(1)" each place it appears, and

(3) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone business property as stock, an interest, a business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(C)(i).

(Added Pub. L. 119–21, title VII, §70421(d)(1), July 4, 2025, 139 Stat. 227 .)

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable years beginning after July 4, 2025, see section 70421(d)(5) of Pub. L. 119–21, set out as an Effective Date of 2025 Amendment note under section 6011 of this title.

Secretary Reporting of Data on Opportunity Zone and Rural Opportunity Zone Tax Incentives

Pub. L. 119–21, title VII, §70421(e), July 4, 2025, 139 Stat. 231 , provided that:

"(1) In general.-In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2028, for necessary expenses of the Internal Revenue Service to make the reports described in paragraph (2).

"(2) Reports.-As soon as practical after the date of the enactment of this Act [July 4, 2025], and annually thereafter, the Secretary of the Treasury, or the Secretary's delegate (referred to in this section as the 'Secretary') shall make publicly available a report on qualified opportunity funds.

"(3) Information included.-The report required under paragraph (2) shall include, to the extent available, the following information:

"(A) The number of qualified opportunity funds.

"(B) The aggregate dollar amount of assets held in qualified opportunity funds.

"(C) The aggregate dollar amount of investments made by qualified opportunity funds in qualified opportunity fund property, stated separately for each North American Industry Classification System (NAICS) code.

"(D) The percentage of population census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments.

"(E) For each population census tract designated as a qualified opportunity zone, the approximate average monthly number of full-time equivalent employees of the qualified opportunity zone businesses in such qualified opportunity zone for the preceding 12-month period (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such qualified opportunity fund businesses as determined appropriate by the Secretary.

"(F) The percentage of the total amount of investments made by qualified opportunity funds in-

"(i) qualified opportunity zone property which is real property; and

"(ii) other qualified opportunity zone property.

"(G) For each population census tract, the aggregate approximate number of residential units resulting from investments made by qualified opportunity funds in real property.

"(H) The aggregate dollar amount of investments made by qualified opportunity funds in each population census tract.

"(4) Additional information.-

"(A) In general.-Beginning with the report submitted under paragraph (2) for the 6th year after the date of the enactment of this Act, the Secretary shall include in such report the impacts and outcomes of a designation of a population census tract as a qualified opportunity zone as measured by economic indicators, such as job creation, poverty reduction, new business starts, and other metrics as determined by the Secretary.

"(B) Semi-decennial information.-

"(i) In general.-In the case of any report submitted under paragraph (2) in the 6th year or the 11th year after the date of the enactment of this Act, the Secretary shall include the following information:

"(I) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) between the 5-year period ending on the date of the enactment of Public Law 115–97 [Dec. 22, 2017] and the most recent 5-year period for which data is available.

"(II) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) for the most recent 5-year period for which data is available between such population census tracts and similar population census tracts that were not designated as a qualified opportunity zone.

"(ii) Control groups.-For purposes of clause (i), the Secretary may combine population census tracts into such groups as the Secretary determines appropriate for purposes of making comparisons.

"(iii) Factors listed.-The factors listed in this clause are the following:

"(I) The unemployment rate.

"(II) The number of persons working in the population census tract, including the percentage of such persons who were not residents in the population census tract in the preceding year.

"(III) Individual, family, and household poverty rates.

"(IV) Median family income of residents of the population census tract.

"(V) Demographic information on residents of the population census tract, including age, income, education, race, and employment.

"(VI) The average percentage of income of residents of the population census tract spent on rent annually.

"(VII) The number of residences in the population census tract.

"(VIII) The rate of home ownership in the population census tract.

"(IX) The average value of residential property in the population census tract.

"(X) The number of affordable housing units in the population census tract.

"(XI) The number of new business starts in the population census tract.

"(XII) The distribution of employees in the population census tract by North American Industry Classification System (NAICS) code.

"(5) Protection of identifiable return information.-In making reports required under this subsection, the Secretary-

"(A) shall establish appropriate procedures to ensure that any amounts reported do not disclose taxpayer return information that can be associated with any particular taxpayer or competitive or proprietary information, and

"(B) if necessary to protect taxpayer return information, may combine information required with respect to individual population census tracts into larger geographic areas.

"(6) Definitions.-Any term used in this subsection which is also used in subchapter Z of chapter 1 of the Internal Revenue Code of 1986 [26 U.S.C. 1400Z–1 et seq.] shall have the meaning given such term under such subchapter.

"(7) Reports on qualified rural opportunity funds.-The Secretary shall make publicly available, with respect to qualified rural opportunity funds, separate reports as required under this subsection, applied-

"(A) by substituting 'qualified rural opportunity' for 'qualified opportunity' each place it appears,

"(B) by substituting a reference to this Act [Pub. L. 119–21, see Tables for classification] for 'Public Law 115–97', and

"(C) by treating any reference (after the application of subparagraph (A)) to qualified rural opportunity zone stock, qualified rural opportunity zone partnership interest, qualified rural opportunity zone business, or qualified opportunity zone business property as stock, interest, business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(C)(i) of the Internal Revenue Code of 1986."