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OZ Working Group Submits Request to Treasury for Relief from Provisions Due to COVID-19

Tuesday, April 7, 2020 - 2:00PM

The Opportunity Zones Working Group (OZWG) today submitted a request to the Department of the Treasury, seeking relief from certain provisions concerning the opportunity zones (OZ) incentive due to the COVID-19 pandemic. The OZWG, which includes various stakeholders in community development, asked Treasury to provide relief under authority of Internal Revenue Code Section 7508A, which is triggered by a federally declared disaster. Among the requests is to include COVID-19 effects as a reasonable cause for failure to satisfy the 90 percent investment standard, to extend the 180-day investment period for capital gains for any period that would end during the incident period, to provide a 12-month extension to the 30-month substantial improvement period for property undergoing substantial improvement during the incident period and more. The request also seeks temporary modifications to certain regulatory provisions under the OZ incentive.

For community development, affordable housing and renewable energy updates related to COVID-19, see Novogradac’s dedicated page.

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