Investing in Qualified Opportunity Funds; Correction, 42715-42716 [2021-16664]
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Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations
application for amendment is filed, has
been constructed, and is proposed to
have a total installed generating
capacity of 10 MW or less—Exhibit E, F,
and G under § 4.61; and
(5) For amendment of a license for a
water power project that, at the time the
application is filed, has been
constructed and is proposed to have a
total installed generating capacity of
more than 10 MW—Exhibits A, B, C, D,
E, F, and G under § 4.51.
*
*
*
*
*
§ 4.401
■
[Amended]
10. In § 4.401, remove paragraph (f)(3).
PART 5—INTEGRATED LICENSE
APPLICATION PROCESS
11. The authority citation for part 5
continues to read as follows:
Authority: 16 U.S.C. 792–828c, 2601–2645;
42 U.S.C. 7101–7352.
12. In § 5.18, revise paragraph (a)(5)(i)
to read as follows:
■
Application content.
(a) * * *
(5) * * *
(i) License for a minor water power
project and a major water power project
10 MW or less: § 4.61 of this chapter
(General instructions, initial statement,
and Exhibits A, F, and G);
*
*
*
*
*
[FR Doc. 2021–15511 Filed 8–4–21; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9889]
RIN 1545–BO4
Investing in Qualified Opportunity
Funds; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations; correction.
AGENCY:
This document contains
corrections to Treasury Decision 9889,
which was published in the Federal
Register on Monday, January 13, 2020.
Treasury Decision 9889 contained final
regulations under the Internal Revenue
Code (Code) that govern the extent to
which taxpayers may elect the Federal
income tax benefits with respect to
certain equity interests in a qualified
opportunity fund (QOF).
khammond on DSKJM1Z7X2PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:02 Aug 04, 2021
Jkt 253001
Background
The final regulations (TD 9889) that
are the subject of this correction are
under section 1400Z–2 of the Code.
Need for Correction
As published on January 13, 2020 (85
FR 1866) the final regulations (TD 9889)
contain errors that need to be corrected.
■
§ 5.18
These corrections are effective
on August 5, 2021 and applicable on or
after January 13, 2020.
FOR FURTHER INFORMATION CONTACT:
Concerning section 1400Z–2 and these
regulations generally, Harith J. Razaa,
(202) 317–7006, or Kyle C. Griffin, (202)
317–4718, of the Office of Associate
Chief Counsel (Income Tax and
Accounting). These numbers are not
toll-free numbers.
SUPPLEMENTARY INFORMATION:
DATES:
Correction of Publication
Accordingly, the final regulations (TD
9889) that are the subject of FR Doc.
2019–27846, appearing on page 1866 in
the Federal Register of January 13,
2020, are corrected as follows:
1. On page 1897, second and third
columns, removing the fourth through
the sixth sentences of the last paragraph.
2. On page 1923, first column, the first
full paragraph is corrected to read: ‘‘As
set forth in the final regulations, the 62month working capital safe harbor
provides that, during the maximum 62month covered period, (1) NQFP in
excess of the five-percent NQFP
limitation will not cause a trade or
business to fail to qualify as a qualified
opportunity zone business, and (2) gross
income earned from the trade or
business will be counted towards
satisfying the 50-percent gross income
requirement (each of clauses (1) and (2)
function in a manner similar to the 31month working capital safe harbor). In
addition, the regulations provide
additional flexibility for entities
utilizing the working capital safe harbor.
First, for start-up entities, the 62-month
working capital safe harbor provides
that, during the maximum 62-month
covered period, if property of an entity
that would otherwise be NQFP is treated
as being a reasonable amount of working
capital under the safe harbor, the entity
satisfies the requirements of section
1400Z–2(d)(3)(A)(i) only during the
working capital safe harbor period(s)
with regard to such property. However,
the final regulations make clear that
such property is not and will never be
qualified opportunity zone business
property for any purpose. Second, for
any eligible entity utilizing the working
capital safe harbor, if tangible property
is expected to be qualified opportunity
PO 00000
Frm 00035
Fmt 4700
Sfmt 4700
42715
zone business property pursuant to the
written plan, such tangible property is
treated as qualified opportunity zone
business during the working capital safe
harbor test for purposes of section
1400Z–2(d)(3). Under the 62-month
working capital safe harbor, intangible
property purchased or licensed with
working capital covered by the safe
harbor, and pursuant to the plan
submitted with respect to that safe
harbor, will count towards the
satisfaction of the 40-percent intangible
property use test.’’
3. On page 1926, third column, the
second sentence of the first full
paragraph, the language ‘‘In general, the
final regulations permit a qualified
opportunity zone business to treat
tangible property for which working
capital covered by the 31-month
working capital safe harbor is expended
as (i) used in the trade or business of the
qualified opportunity zone business,
and (ii) qualified opportunity zone
business property throughout the period
during which such working capital is
covered by the safe harbor.’’ is corrected
to read ‘‘In general, the 62-month
working capital safe harbor under the
final regulations provides that, during
the maximum 62-month covered period,
if property of a start-up entity that
would otherwise be NQFP is treated as
being a reasonable amount of working
capital under the safe harbor, the startup entity satisfies the requirements of
section 1400Z–2(d)(3)(A)(i) only during
the working capital safe harbor period(s)
with regard to such property. However,
the final regulations make clear that
such property is not qualified
opportunity zone business property for
any other purpose. See part V.N.3.c of
this Summary of Comments and
Explanation of Revisions describing the
62-month working capital safe harbor
set forth in § 1.1400Z2(d)–1(d)(3)(vi).’’.
4. On page 1926, third column, the
first through the sixth line from the
bottom of the first full paragraph, the
language ‘‘capital covered by the 31month working capital safe harbor are
not, following the conclusion of the
final safe harbor period, treated as
tangible property for purposes of
applying the 70-percent tangible
property standard.’’ is corrected to read
‘‘capital covered by the 62-month
working capital safe harbor are not,
following the conclusion of the final
safe harbor period, treated as qualified
opportunity zone business property for
purposes of applying the 70-percent
tangible property standard. Because
working capital is not tangible property,
working capital covered by the 62month safe harbor cannot be treated as
qualified opportunity zone business
E:\FR\FM\05AUR1.SGM
05AUR1
42716
Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations
property under the proposed regulations
or the final regulations except as
provided in section 1.1400Z2(d)–
1(d)(3)(vi)(D).’’.
Oluwafunmilayo P. Taylor,
Federal Register Liaison, Publications and
Regulations Branch, Legal Processing
Division, Associate Chief Counsel (Procedure
and Administration).
[FR Doc. 2021–16664 Filed 8–4–21; 8:45 am]
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
BILLING CODE 4830–01–P
Par. 2. Section 1.1400Z2(d)–1 is
amended by revising paragraphs (a)(3)
and (d)(3)(vi)(D) to read as follows:
■
DEPARTMENT OF THE TREASURY
Internal Revenue Service
§ 1.1400Z2(d)–1 Qualified opportunity
funds and qualified opportunity zone
businesses.
26 CFR Part 1
*
[TD 9889]
RIN 1545–BO4
Investing in Qualified Opportunity
Funds; Correcting Amendment
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
This document contains
corrections to Treasury Decision 9889,
which was published in the Federal
Register on Monday, January 13, 2020.
Treasury Decision 9889 contained final
regulations under the Internal Revenue
Code (Code) that govern the extent to
which taxpayers may elect the Federal
income tax benefits with respect to
certain equity interests in a qualified
opportunity fund (QOF).
DATES: These corrections are effective
on August 5, 2021 and applicable on or
after January 13, 2020.
FOR FURTHER INFORMATION CONTACT:
Concerning section 1400Z–2 and these
regulations generally, Harith J. Razaa,
(202) 317–7006, or Kyle C. Griffin, (202)
317–4718, of the Office of Associate
Chief Counsel (Income Tax and
Accounting). These numbers are not
toll-free numbers.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations (TD 9889) that
are the subject of this correction are
under section 1400Z–2 of the Code.
khammond on DSKJM1Z7X2PROD with RULES
Need for Correction
As published on January 13, 2020 (85
FR 19082) the final regulations (TD
9889) contain errors that need to be
corrected.
List of Subjects in 26 CFR Part 1
Income Taxes, Reporting and
recordkeeping requirements.
VerDate Sep<11>2014
16:02 Aug 04, 2021
Jkt 253001
*
*
*
*
(a) * * *
(3) Self decertification of a QOF. If a
QOF chooses to decertify as a QOF, the
self-decertification must be effected in
such form and manner as may be
prescribed by the Commissioner in IRS
forms or instructions or in publications
or guidance published in the Internal
Revenue Bulletin (see §§ 601.601(d)(2)
and 601.602 of this chapter.)
*
*
*
*
*
(d) * * *
(3) * * *
(vi) * * *
(D) Safe harbor for working capital
and property on which working capital
is being expended—(1) Working capital
for start-up businesses. For start-up
businesses utilizing the working capital
safe harbor, if paragraph (d)(3)(v) of this
section treats property of an entity that
would otherwise be nonqualified
financial property as being a reasonable
amount of working capital because of
compliance with the three requirements
of paragraphs (d)(3)(v)(A) through (C) of
this section, the entity satisfies the
requirements of section 1400Z–
2(d)(3)(A)(i) only during the working
capital safe harbor period(s) for which
the requirements of paragraphs
(d)(3)(v)(A) through (C) of this section
are satisfied; however such property is
not qualified opportunity zone business
property for any purpose.
(2) Tangible property acquired with
covered working capital. For any
eligible entity, if tangible property
referred to in paragraph (d)(3)(v)(A) is
expected to satisfy the requirements of
section 1400Z–2(d)(2)(D)(i) as a result of
the planned expenditure of working
capital described in paragraph
(d)(3)(v)(A), and is purchased, leased, or
improved by the trade or business,
pursuant to the written plan for the
expenditure of the working capital, then
the tangible property is treated as
qualified opportunity zone business
PO 00000
Frm 00036
Fmt 4700
Sfmt 4700
property satisfying the requirements of
section 1400Z–2(d)(2)(D)(i), during that
and subsequent working capital periods
the property is subject to, for purposes
of the 70-percent tangible property
standard in section 1400Z–2(d)(3).
*
*
*
*
*
Oluwafunmilayo P. Taylor,
Federal Register Liaison, Publications and
Regulations Branch, Legal Processing
Division, Associate Chief Counsel (Procedure
and Administration).
[FR Doc. 2021–16663 Filed 8–4–21; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2021–0574]
RIN 1625–AA00
Safety Zone; Flagship League Mariners
Ball Fireworks; Presque Isle Bay; Erie,
PA
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone for
navigable waters in Presque Isle bay in
Erie, PA. The safety zone is needed to
protect personnel, vessels, and the
marine environment from potential
hazards created by a fireworks display.
Entry of vessels or persons into this
zone is prohibited unless specifically
authorized by the Captain of the Port
Buffalo or a designated representative.
DATES: This rule is effective August 20,
2021, from 8:50 p.m. through 10 p.m.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2021–
0574 in the search box and click
‘‘Search.’’ Next, in the Document Type
column, select ‘‘Supporting & Related
Material.’’
SUMMARY:
If
you have questions on this rule, call or
email MST2 Anthony Urbana, U.S.
Coast Guard Sector Buffalo via
telephone 716–843–9342 or email D09SMB-SECBuffalo-WWM@uscg.mil.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
I. Table of Abbreviations
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
E:\FR\FM\05AUR1.SGM
05AUR1
]]>Agencies
[Federal Register Volume 86, Number 148 (Thursday, August 5, 2021)]
[Rules and Regulations]
[Pages 42715-42716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16664]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9889]
RIN 1545-BO4
Investing in Qualified Opportunity Funds; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations; correction.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to Treasury Decision 9889,
which was published in the Federal Register on Monday, January 13,
2020. Treasury Decision 9889 contained final regulations under the
Internal Revenue Code (Code) that govern the extent to which taxpayers
may elect the Federal income tax benefits with respect to certain
equity interests in a qualified opportunity fund (QOF).
DATES: These corrections are effective on August 5, 2021 and applicable
on or after January 13, 2020.
FOR FURTHER INFORMATION CONTACT: Concerning section 1400Z-2 and these
regulations generally, Harith J. Razaa, (202) 317-7006, or Kyle C.
Griffin, (202) 317-4718, of the Office of Associate Chief Counsel
(Income Tax and Accounting). These numbers are not toll-free numbers.
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9889) that are the subject of this
correction are under section 1400Z-2 of the Code.
Need for Correction
As published on January 13, 2020 (85 FR 1866) the final regulations
(TD 9889) contain errors that need to be corrected.
Correction of Publication
Accordingly, the final regulations (TD 9889) that are the subject
of FR Doc. 2019-27846, appearing on page 1866 in the Federal Register
of January 13, 2020, are corrected as follows:
1. On page 1897, second and third columns, removing the fourth
through the sixth sentences of the last paragraph.
2. On page 1923, first column, the first full paragraph is
corrected to read: ``As set forth in the final regulations, the 62-
month working capital safe harbor provides that, during the maximum 62-
month covered period, (1) NQFP in excess of the five-percent NQFP
limitation will not cause a trade or business to fail to qualify as a
qualified opportunity zone business, and (2) gross income earned from
the trade or business will be counted towards satisfying the 50-percent
gross income requirement (each of clauses (1) and (2) function in a
manner similar to the 31-month working capital safe harbor). In
addition, the regulations provide additional flexibility for entities
utilizing the working capital safe harbor. First, for start-up
entities, the 62-month working capital safe harbor provides that,
during the maximum 62-month covered period, if property of an entity
that would otherwise be NQFP is treated as being a reasonable amount of
working capital under the safe harbor, the entity satisfies the
requirements of section 1400Z-2(d)(3)(A)(i) only during the working
capital safe harbor period(s) with regard to such property. However,
the final regulations make clear that such property is not and will
never be qualified opportunity zone business property for any purpose.
Second, for any eligible entity utilizing the working capital safe
harbor, if tangible property is expected to be qualified opportunity
zone business property pursuant to the written plan, such tangible
property is treated as qualified opportunity zone business during the
working capital safe harbor test for purposes of section 1400Z-2(d)(3).
Under the 62-month working capital safe harbor, intangible property
purchased or licensed with working capital covered by the safe harbor,
and pursuant to the plan submitted with respect to that safe harbor,
will count towards the satisfaction of the 40-percent intangible
property use test.''
3. On page 1926, third column, the second sentence of the first
full paragraph, the language ``In general, the final regulations permit
a qualified opportunity zone business to treat tangible property for
which working capital covered by the 31-month working capital safe
harbor is expended as (i) used in the trade or business of the
qualified opportunity zone business, and (ii) qualified opportunity
zone business property throughout the period during which such working
capital is covered by the safe harbor.'' is corrected to read ``In
general, the 62-month working capital safe harbor under the final
regulations provides that, during the maximum 62-month covered period,
if property of a start-up entity that would otherwise be NQFP is
treated as being a reasonable amount of working capital under the safe
harbor, the start-up entity satisfies the requirements of section
1400Z-2(d)(3)(A)(i) only during the working capital safe harbor
period(s) with regard to such property. However, the final regulations
make clear that such property is not qualified opportunity zone
business property for any other purpose. See part V.N.3.c of this
Summary of Comments and Explanation of Revisions describing the 62-
month working capital safe harbor set forth in Sec. 1.1400Z2(d)-
1(d)(3)(vi).''.
4. On page 1926, third column, the first through the sixth line
from the bottom of the first full paragraph, the language ``capital
covered by the 31-month working capital safe harbor are not, following
the conclusion of the final safe harbor period, treated as tangible
property for purposes of applying the 70-percent tangible property
standard.'' is corrected to read ``capital covered by the 62-month
working capital safe harbor are not, following the conclusion of the
final safe harbor period, treated as qualified opportunity zone
business property for purposes of applying the 70-percent tangible
property standard. Because working capital is not tangible property,
working capital covered by the 62-month safe harbor cannot be treated
as qualified opportunity zone business
[[Page 42716]]
property under the proposed regulations or the final regulations except
as provided in section 1.1400Z2(d)-1(d)(3)(vi)(D).''.
Oluwafunmilayo P. Taylor,
Federal Register Liaison, Publications and Regulations Branch, Legal
Processing Division, Associate Chief Counsel (Procedure and
Administration).
[FR Doc. 2021-16664 Filed 8-4-21; 8:45 am]
BILLING CODE 4830-01-P
