Exclusion of income attributable to certified diaspora investments

(a) In general Chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter: AA Certified diaspora investments Sec. 1400AA. Certified diaspora investments. 1400AA. Certified diaspora investments (a) In general In the case of a certified diaspora investment— (1) gross income for the taxable year shall not include any dividend or interest payments received with respect to such investment, and (2) the basis of such property shall be equal to the fair market value of such investment on the date that the investment is sold or exchanged. (b) Limitation The sum of the amount of payments taken into account under paragraph (1) of subsection (a) and the amount of the increase in basis of assets of the taxpayer under paragraph (2) of such subsection for any taxable year may not exceed $12,000. (c) Qualified diaspora investment For purposes of this section the term qualified diaspora investment means any equity, debt, or blended capital investment in a company or project based in a covered country (as defined in section 223A) and duly registered with such country’s securities authority or channeled through a fund recognized by a United States development finance institution. (d) Inflation adjustment (1) In general In the case of any taxable year beginning after 2025, the $12,000 amount in subsection (b) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any increase under paragraph (1) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100. (e) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.. (b) Clerical amendment The table of subchapters for chapter 1 of subtitle A of such Code is amended by inserting after the item relating to subchapter Z the following new item: Subchapter AA. Certified diaspora investments.. (c) Effective date The amendments made by this section shall apply to investments made after the date of the enactment of this Act.