Treasury Submits Updated OZ Regulations to OIRA
The Treasury Department submitted updated Internal Revenue Service (IRS) regulations Friday to the Office of Information and Regulatory Affairs (OIRA) for qualified opportunity funds–which invest in opportunity zones (OZs). The regulations will combine and update regulations issued by the Treasury Department in October 2018 and April 2019. The OIRA review process of the proposed OZ regulations has typically taken over 30 days, which if repeated, would delay the release of the regulations until early 2020. Novogradac understands OIRA has been kept informed during the regulation writing process, so it is possible that the regulations would be out before the end of the year.
The Novogradac Opportunity Zones Working Group has requested of Treasury and the IRS, that the updated regulations should either be published in the Federal Register on or before Dec. 20, or not until after the end of the year. The Dec. 20 deadline is necessary to give fund managers, tax practitioners and investors time to absorb the meaning of the new regulations and their impact on year-end investments, if the updated regulations are released before year end.