1. Short title This Act may be cited as the Opportunity Zone Reform Act . 2. Modification of tracts qualified to be designated as qualified opportunity zones (a) Disqualification of certain census tracts (1) Census tracts with high median family income Paragraph (1) of section 1400Z–1(c) of the Internal Revenue Code of 1986 is amended to read as follows: (1) Low-income communities (A) In general Except as provided in subparagraph (B), the term low-income community has the same meaning as when used in section 45D(e). (B) Exception (i) In general Such term shall not include any census tract if the median family income for such tract exceeds 120 percent of the national median family income (as determined based the most recent data published by the Bureau of the Census on the date of the enactment of the Opportunity Zone Reform Act ). (ii) Special rule Clause (i) shall not apply to any census tract if— (I) the poverty rate for such tract is at least 20 percent, and (II) less than 10 percent of the population of such tract is enrolled in an institution of higher education (as defined in section 101 of the Higher Education Act of 1965). . (2) Contiguous census tracts Section 1400Z–1 of such Code is amended by striking subsection (e) and redesignating subsection (f) as subsection (e). (b) Treatment of previously designated tracts Section 1400Z–1 of such Code, as amended by subsection (a)(2), is amended by adding at the end the following: (f) Treatment of certain census tracts (1) In general Except as provided in section 1400Z–2(d)(2)(D), any census tract (other than a census tract in Puerto Rico) which is not a low-income community and which was designated as a qualified opportunity zone before the date of the enactment of the Opportunity Zone Reform Act shall not be treated as a qualified opportunity zone on or after such date of enactment. (2) Replacement zones (A) In general A State may designate a low-income community as a qualified opportunity zone to replace a census tract the status of which as a qualified