On December 19, Treasury and the IRS released final regulations regarding investments in opportunity zones under section 1400Z-2. Opportunity zones were created by the Tax Cuts and Jobs Act and allow tax benefits for investments in low-income communities, through what are termed qualified opportunity funds (“QOF”). The final regulations provide guidance on the ability of taxpayers to exclude gain through investments in QOFs after holding the equity interests for at least 10 years and also provide guidance regarding the requirements that an entity must meet to be considered a QOF.

Final Regulations