The improvement threshold in a rural zone is cut to 50 percent
What the document says“is amended by inserting "(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))" after "the adjusted basis of such property".”
The section inserts words into section 1400Z-2(d)(2)(D)(ii) of the Internal Revenue Code of 1986 setting the substantial improvement test at 50 percent of adjusted basis for property in a zone made up entirely of a rural area. It also replaces the fixed December 31, 2017 acquisition dates in the property, stock and partnership interest tests with the applicable start date and a new applicable date term.
What the document actually says“is amended by inserting "(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))" after "the adjusted basis of such property".”
New words are put into a rule on improving property. They set the test at 50 percent of the value on the books. That holds in a zone that is all rural.
Elsewhere the test is higher. A lower test is easier to meet. Fixed dates in nearby rules are also replaced.
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