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131 STAT. 2184 PUBLIC LAW 115–97—DEC. 22, 2017 of the enactment of the Tax Cuts and Jobs Act, as extended under subsection (b)(2). ‘‘(3) STATE.—For purposes of this section, the term ‘State’ includes any possession of the United States. ‘‘(d) NUMBER OF DESIGNATIONS.— ‘‘(1) IN GENERAL.—Except as provided by paragraph (2), the number of population census tracts in a State that may be designated as qualified opportunity zones under this section may not exceed 25 percent of the number of low-income commu- nities in the State. ‘‘(2) EXCEPTION.—If the number of low-income communities in a State is less than 100, then a total of 25 of such tracts may be designated as qualified opportunity zones. ‘‘(e) DESIGNATION OF TRACTS CONTIGUOUS WITH LOW-INCOME COMMUNITIES.— ‘‘(1) IN GENERAL.—A population census tract that is not a low-income community may be designated as a qualified opportunity zone under this section if— ‘‘(A) the tract is contiguous with the low-income community that is designated as a qualified opportunity zone, and ‘‘(B) the median family income of the tract does not exceed 125 percent of the median family income of the low-income community with which the tract is contiguous. ‘‘(2) LIMITATION.—Not more than 5 percent of the popu- lation census tracts designated in a State as a qualified oppor- tunity zone may be designated under paragraph (1). ‘‘(f) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.—A designa- tion as a qualified opportunity zone shall remain in effect for the period beginning on the date of the designation and ending at the close of the 10th calendar year beginning on or after such date of designation. ‘‘SEC. 1400Z–2. SPECIAL RULES FOR CAPITAL GAINS INVESTED IN OPPORTUNITY ZONES. ‘‘(a) IN GENERAL.— ‘‘(1) TREATMENT OF GAINS.—In the case of gain from the sale to, or exchange with, an unrelated person of any property held by the taxpayer, at the election of the taxpayer— ‘‘(A) gross income for the taxable year shall not include so much of such gain as does not exceed the aggregate amount invested by the taxpayer in a qualified opportunity fund during the 180-day period beginning on the date of such sale or exchange, ‘‘(B) the amount of gain excluded by subparagraph (A) shall be included in gross income as provided by sub- section (b), and ‘‘(C) subsection (c) shall apply. ‘‘(2) ELECTION.—No election may be made under paragraph (1)— ‘‘(A) with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect, or ‘‘(B) with respect to any sale or exchange after December 31, 2026. ‘‘(b) DEFERRAL OF GAIN INVESTED IN OPPORTUNITY ZONE PROP- ERTY.— 26 USC 1400Z–2. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00132 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS