In a Notes from Novogradac blog post, Michael J. Novogradac, discusses how the opportunity zones guidance issued today by Treasury provides answers to many questions and includes information that will help guide investors, fund managers and others.

Two organizations submitted letters concerning the Treasury Department’s ongoing review of proposed guidance for opportunity zones (OZs). Commerce officials from 12 states made a series of recommendations for OZ guidance, including a grace period for opportunity funds before being subjected to the 90 percent qualified property allocation test and the definition of “substantial improvement” of qualified OZ business property.

Rep. Jenniffer Gonzalez-Colon, R, Puerto Rico, introduced legislation to provide a federal tax credit for certain business expenses in census tracts that meet one of three definitions for an economically distressed zone and are designated as such by local or state government. H.R.

The National Association of Home Builders and eight other national organizations on Monday asked acting Internal Revenue Service Commissioner David Kautter to issue guidance on issues facing potential investors in the federal opportunity zones initiative. Their letter specifically seeks a definition of qualified investments, a clarification of the oversight process for investment funds and clarification of several teams in the statute.

The U.S. Impact Investing Alliance, a group of more than 800 investors and financial intermediaries, addressed a letter this week to Treasury Secretary Steven Mnuchin asking that he instruct the Internal Revenue Service or another agency to collect and then provide data on opportunity funds that participate in the opportunity zones incentive.

The U.S. Conference of Mayors sent a letter to the Internal Revenue Service (IRS) and U.S Department of Treasury asking for “timely and effective IRS guidance” for the implementation of opportunity zones provisions. The letter specifies five reasons for guidance to be issued in a timely manner, including the need for sufficient time for meaningful investments in affordable housing.

The Opportunity Zones Coalition earlier this month sent a letter to David J. Kautter, the acting commissioner of the Internal Revenue Service, requesting guidance from the IRS and Treasury Department on important issues concerning the opportunity zones (OZ) incentive.

The Treasury Department today issued Notice 2018-48, which lists the population tracts that are officially designated as qualified opportunity zones (OZs). Investors in the qualified OZs can defer tax on prior gains no later than Dec. 31, 2026. The final OZs were designated last week.

The Internal Revenue Service (IRS) updated and expanded the content on its opportunity zones frequently asked questions page. The new content includes confirmation that 2017 and 2018 gains are eligible for deferral and that a taxpayer may file an amended 2017 return to include a deferral on gains.