Request for Information on Data Collection and Tracking for Qualified Opportunity Zones, 18648-18649 [2019-08076]

Agencies

• DEPARTMENT OF THE TREASURY

[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18648-18649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08076]


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DEPARTMENT OF THE TREASURY


Request for Information on Data Collection and Tracking for 
Qualified Opportunity Zones

AGENCY: Department of the Treasury.

ACTION: Notice and request for information.

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SUMMARY: The Department of the Treasury (Treasury Department) is 
publishing this notice and request for information to seek public input 
on the development of public information collection and tracking 
related to investment in qualified opportunity funds (QOFs).

DATES: Comments on this notice and request for information should be 
received by May 31, 2019.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice according to the instructions for ``Electronic Submission 
of Comments'' below. All submissions must refer to this document. The 
Treasury Department encourages the early submission of comments.

Electronic Submission of Comments

    Interested persons must submit comments electronically through the 
Federal eRulemaking Portal at https://www.regulations.gov. Electronic 
submission of comments allows the commenter maximum time to prepare and 
submit a comment, ensures timely receipt, and enables the Treasury 
Department to make them available to the public. Comments submitted 
electronically through the https://www.regulations.gov website can be 
viewed by other commenters and interested members of the public. 
Commenters should follow the instructions provided on that site to 
submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through the method specified above.

    No Facsimile Comments: Facsimile (FAX) comments will not be 
accepted.
    Public Inspection of Public Comments: In general, all properly 
submitted comments will be available for inspection and downloading at 
https://www.regulations.gov.
    Additional Instructions: Please note the number of the question to 
which you are responding at the top of each response. Though the 
responses will be screened for appropriateness, in general comments 
received, including attachments and other supporting materials, are 
part of the public record and are immediately available to the public. 
Do not enclose any information in your comment or supporting materials 
that you consider confidential or inappropriate for public disclosure.

FOR FURTHER INFORMATION CONTACT: Craig Johnson, Office of Tax Analysis, 
202-622-2000. All responses to this notice and request for information 
should be submitted via https://www.regulations.gov to ensure 
consideration.

SUPPLEMENTARY INFORMATION: Section 13823 of the Tax Cuts and Jobs Act, 
Pub. L. 115-97, 131 Stat. 2054, 2184 (2017) (TCJA), amended the 
Internal Revenue Code to add sections 1400Z-1 and 1400Z-2. Sections 
1400Z-1 and 1400Z-2 seek to encourage economic growth and investment in 
designated distressed communities (qualified opportunity zones) by 
providing Federal income tax benefits to taxpayers who invest in 
businesses located within these zones through a QOF. The purpose of 
information collection and tracking is to measure the effectiveness of 
the policy in achieving its stated goals, and ensure that this 
investment opportunity remains an attractive option for investors to 
use.
    A QOF is required to file Form 8996 as part of its annual Federal 
income tax return. On this form, the QOF reports the amount of assets 
in the QOF and what portion of those assets are qualified opportunity 
zone property (as defined in section 1400Z-2(d)(2)(A)). Based on annual 
data provided in Form 8996, with a lag of approximately two years 
following the taxable year, the Treasury Department could determine and 
report publicly on (i) the number of QOFs, (ii) the aggregate amount of 
investment in QOFs, and (iii) the portion of that investment reported 
by QOFs as qualified opportunity zone property.
    However, the information reported on the current version of Form 
8996 lacks sufficient granularity for the Treasury Department to 
determine the amount and type of investment that flows into an 
individual qualified opportunity zone through a QOF. This type of 
information would be valuable for evaluating the success of the 
qualified opportunity zone tax incentive on increasing investment and 
economic activity within qualified opportunity zones.
    In the coming weeks, the Treasury Department anticipates that 
possible revisions to the Form 8996 (OMB Control number 1545-0123) 
could be proposed for tax years 2019 and following. Subject to tax 
administration limitations, the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)), and other requirements under law, it is expected that 
such proposed revisions to the Form 8996 could require additional 
information such as (1) the employer identification number (EIN) of the 
qualified opportunity zone businesses owned by a QOF and (2) the amount 
invested by QOFs and qualified opportunity zone businesses located in 
particular census tracts designated as qualified opportunity zones. 
Notice of the availability of the draft Form 8996 and request for 
comment will be available at IRS.gov/DraftForms.
    Treasury Department is seeking public comment on the following 
questions:
    1. What data would be useful for tracking the effectiveness of 
providing tax incentives for investment in qualified opportunity zones 
to bring economic development and job creation to distressed 
communities?

[[Page 18649]]

    [ssquf] Comments could address (A) suggested measures that would 
signal improved economic development in local target markets as well as 
spillover to neighboring areas, (B) measures of job creation specific 
to the distressed community, (C) who would collect the data, (D) the 
frequency of data to be collected, and (E) sources from which to 
collect data.
    2. In addition to the anticipated revisions to Form 8996 discussed 
in the Summary of this Notice and Request for Information, is there 
other information that could appropriately be collected on a tax form 
that would be helpful in measuring the effectiveness of the opportunity 
zone incentives. For example, should qualified opportunity zone 
businesses be required to report on a tax form the location by census 
tract of (1) owned and leased tangible property or (2) employees of a 
qualified opportunity zone business?
    [ssquf] Comments could address (A) suggested alternative sources to 
collect this information, (B) the detail required, such as geocoding or 
type of property, and (C) the cost of data reporting.
    3. What data would be useful for measuring how much would have been 
invested in qualified opportunity zones in the absence of the 
opportunity zone incentives?
    [ssquf] Comments could address (A) suggested measures for the 
current economic viability of investment in similarly distressed, but 
non-qualified census tracts, and (B) current economic trends in 
qualified and non-qualified census tracts.
    4. What data would be useful for ensuring that the investment 
opportunity remains an attractive option for investors?
    [ssquf] Comments could address (A) information on the quantity and 
location of investment, (B) the type of property or businesses 
generating investment interest, and (C) sources from which to collect 
data.
    5. What are the costs and benefits of various methods of 
information collection? Who should perform this data collection?
    [ssquf] Comments could address (A) methods of collection and data 
submission, (B) costs associated with each method, including time 
burden and other cost considerations, and (C) any specific advantages 
that a particular method might offer.
    6. What considerations should government officials take into 
account when considering data to analyze the effectiveness of the 
qualified opportunity zone incentives to promote economic development 
to distressed areas? Over what time period should this analysis occur?
    [ssquf] Comments could address (A) specific concerns of investing 
in distressed areas, (B) the ability of job creation to match local 
labor force skills, (C) opportunity zone investment crowding out other 
private or public investment, and (D) risk factors not elsewhere noted.
    7. How do you view the role of the Federal Government, and Tribal, 
State and local governments in the ongoing maintenance and 
administration of opportunity zones?
    [ssquf] Comments could address: Monitoring, tracking, facilitation, 
or any other role government could serve to improve the effectiveness 
of the opportunity zone incentives.
    8. Is there any additional information regarding data collection 
and tracking for opportunity zones not already addressed that you would 
like to provide?

    Dated: April 16, 2019.
David J. Kautter,
Assistant Secretary (Tax Policy).
[FR Doc. 2019-08076 Filed 4-30-19; 8:45 am]
BILLING CODE 4810-25-P