Opportunity Zone Credit Enhancement Act.

The Bergeson-Peace Infrastructure and Economic Development Bank Act authorizes the California Infrastructure and Economic Development Bank to, among other things, provide financing for specified economic development projects, including economic development facilities, as defined. The act authorizes the bank to make credit enhancements to a sponsor or participating party as financial assistance for a project. The act prohibits the bank from providing financing if the bank has not determined that the financing meets specified public interest criteria. Existing federal law authorizes the United States Secretary of the Treasury to certify and designate qualified opportunity zones. Existing federal law authorizes a taxpayer to defer to a later taxable year specified capital gains from certain investments in property located in a qualified opportunity zone. Under existing federal law, a qualified opportunity zone means a population census tract that is a low-income community. This bill would require the bank to consider providing a credit enhancement to support an economic development facility in a qualified opportunity zone and to establish procedures for the expeditious review of applications for those credit enhancements. The bill would further authorize the bank to provide credit enhancements that support financing for economic development facilities located in a qualified opportunity zone. The bill would also create additional required public interest criteria that would apply to these credit enhancements.