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H.R. 8131

Hemp Opportunity Zone Act of 2020

Hemp Opportunity Zone Act of 2020

The bill permits the designation of up to 25% of the low-income communities as Hemp Opportunity Zones. Hemp, or industrial hemp, is a variety of the cannabis sativa plant species grown specifically for certain industrial uses, such as making rope, strong fabrics, fiberboard, and paper.

In designating such zones, preference must be given to areas that are facing obstacles to economic development, are the focus of governmental or private economic development initiatives, are poised for economic growth requiring access to a larger hemp market, and represent the areas of a state where hemp production would result in the highest return on investment.

The bill also allows

  • deferral of tax on gain from investment in Hemp Opportunity Zones,
  • immediate expensing off qualified zone business property,
  • an increased business income tax deduction for hemp producers,
  • a start-up tax credit for hemp farmers, and
  • a 30% investment tax credit for the farming property of certain small hemp farmers.

The bill requires the Department of the Treasury to study certain issues relating to hemp production, including the potential opportunities for hemp seed to be used as animal feed and for the use of hemp to create personal protective equipment for health care workers and first responders.

Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Rep. Riggleman, Denver [R-VA-5](R-VA)Sponsor
2committees4actions12subjects
  1. IntroReferralH11100

    Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

    Agriculture Committee
  2. IntroReferralH11100

    Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

    Ways and Means Committee
  3. IntroReferralIntro-H

    Introduced in House

  4. IntroReferral1000

    Introduced in House

Hemp Opportunity Zone Act of 2020 — Informed