1. Short title This Act may be cited as the Opportunity Zones Enhancement Act of 2023 . 2. Exclusion for interest on loans to qualified opportunity zone businesses (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Interest on loans to qualified opportunity zone businesses (a) Exclusion Gross income shall not include an amount equal to so much of the interest received by a depository institution on any loan to a qualified borrower as does not exceed the lesser of— (1) the taxpayer’s retained earnings attributable to the taxable year, or (2) $5,000,000. (b) Depository institution For purposes of this section, the term depository institution has the meaning given such term in section 3 of the Federal Deposit Insurance Act. (c) Qualified borrower For purposes of this section, the term qualified borrower means a borrower that at the time of origination of the loan is a qualified opportunity zone business (as defined in section 1400Z–2(d)). (d) Retained earnings For purposes of this section, the term retained earnings means the excess of the taxpayer’s earnings and profits (within the meaning of section 316(a)(2)) for the taxable year over the dividends paid by the taxpayer during such taxable year. (e) Inflation adjustment (1) In general In the case of any taxable year beginning after 2023, the dollar amounts in subsections (a)(2) and (e) 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 2022 for calendar year 2016 in subparagraph (A)(ii). (2) Rounding Any amount under paragraph (1) shall be rounded to the nearest multiple of $1,000,000. (f) Controlled group (1) In general In the case of a depository institution which is a member of a controlled group which includes one or more other depository institutions, such