Investing in Qualified Opportunity Funds; Correction, 42715-42716 [2021-16664]

Download as PDF 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.

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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