Innovation Zone Act This bill replaces the Experimental Sites Initiative of the Department of Education (ED) with an innovation zone initiative consisting of voluntary experiments by participating institutions of higher education. Under the experiments, ED and the institutions may test the effectiveness of statutory and regulatory flexibility that aims for: (1) an increase in student success (e.g., reductions in student loan debt and increases in student retention and employment outcomes); and (2) a reduction of regulations on institutions or ED, without harm to students.