On 19 December 2019, the IRS released final regulations, Sections 1.1400Z2(a)-1 through 1.1400Z2(f)-1 and 1.1502-14Z and 1.1504-3, regarding Federal Opportunity Zones, created through the Tax Cuts and Jobs Act and codified in IRC Sections 1400Z-1 and 1400Z-2. Federal Opportunity Zones are census tracts primarily located in low-income areas that were nominated by states and subsequently designated by the IRS. Taxpayers who invest in these zones through entities certified as Opportunity Funds are eligible to receive potentially significant tax advantages. These regulations finalize the proposed regulations that were previously released in October 2018 and May 2019. Although taxpayers have been largely permitted to rely on the proposed regulations, final regulations have been highly anticipated as the IRS flagged many issues in the proposed regulations as open for comment and further clarification.
In response to this milestone, a panel of experienced Ernst & Young LLP professionals will discuss the key issues addressed in the newly released regulations on Opportunity Zones. Topics will include: