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131 STAT. 2187 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(III) during substantially all of the qualified opportunity fund’s holding period for such prop- erty, substantially all of the use of such property was in a qualified opportunity zone. ‘‘(ii) SUBSTANTIAL IMPROVEMENT.—For purposes of subparagraph (A)(ii), property shall be treated as substantially improved by the qualified opportunity fund only if, during any 30-month period beginning after the date of acquisition of such property, additions to basis with respect to such property in the hands of the qualified opportunity fund exceed an amount equal to the adjusted basis of such property at the beginning of such 30-month period in the hands of the qualified opportunity fund. ‘‘(iii) RELATED PARTY.—For purposes of subpara- graph (A)(i), the related person rule of section 179(d)(2) shall be applied pursuant to paragraph (8) of this subsection in lieu of the application of such rule in section 179(d)(2)(A). ‘‘(3) QUALIFIED OPPORTUNITY ZONE BUSINESS.— ‘‘(A) IN GENERAL.—The term ‘qualified opportunity zone business’ means a trade or business— ‘‘(i) in which substantially all of the tangible prop- erty owned or leased by the taxpayer is qualified oppor- tunity zone business property (determined by sub- stituting ‘qualified opportunity zone business’ for ‘qualified opportunity fund’ each place it appears in paragraph (2)(D)), ‘‘(ii) which satisfies the requirements of paragraphs (2), (4), and (8) of section 1397C(b), and ‘‘(iii) which is not described in section 144(c)(6)(B). ‘‘(B) SPECIAL RULE.—For purposes of subparagraph (A), tangible property that ceases to be a qualified opportunity zone business property shall continue to be treated as a qualified opportunity zone business property for the lesser of— ‘‘(i) 5 years after the date on which such tangible property ceases to be so qualified, or ‘‘(ii) the date on which such tangible property is no longer held by the qualified opportunity zone busi- ness. ‘‘(e) APPLICABLE RULES.— ‘‘(1) TREATMENT OF INVESTMENTS WITH MIXED FUNDS.—In the case of any investment in a qualified opportunity fund only a portion of which consists of investments of gain to which an election under subsection (a) is in effect— ‘‘(A) such investment shall be treated as 2 separate investments, consisting of— ‘‘(i) one investment that only includes amounts to which the election under subsection (a) applies, and ‘‘(ii) a separate investment consisting of other amounts, and ‘‘(B) subsections (a), (b), and (c) shall only apply to the investment described in subparagraph (A)(i). ‘‘(2) RELATED PERSONS.—For purposes of this section, per- sons are related to each other if such persons are described VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00135 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS