Rep. Andy Barr
Legislation recently introduced by U.S. Rep. Andy Barr (R-KY) aims to incentivize tax-paying banks with a larger tax exemption if they lend money to Opportunity Zones, which are an economic development tool that allows people to invest in distressed areas in the United States with the goal of spurring economic growth and job creation in low-income communities while providing tax benefits to investors.
“By stimulating lending and investment in underserved areas, we drive progress and create opportunity,” Rep. Barr said on June 20. “This legislation aims to attract capital, foster growth, and uplift distressed communities through increased investment.”
Rep. Barr on June 13 sponsored the Opportunity Zones Enhancement Act of 2023, H.R. 4055, which would amend the Internal Revenue Code of 1986 to exclude interest on loans by depository institutions to qualified Opportunity Zone businesses from gross income, according to the congressional record bill summary.
“The Opportunity Zones Enhancement Act of 2023 incentivizes tax-paying banks to increase lending in Opportunity Zone communities,” said Rep. Barr. “It not only lowers borrowing costs for businesses, empowering them to thrive, but also enables banks to fulfill their Community Reinvestment Act requirements.”
H.R. 4055, which has garnered support from the Independent Community Bankers of America and the American Bankers Association, has been referred for consideration to the U.S. House Ways and Means Committee.