Approved by OIRA and now available for public comment, the much hoped-for second round of regulations on Investing in Qualified Opportunity Funds is here! More than twice the size of the first round of regulations released in October 2018, this 169-page regulatory document was released to the public on Wednesday afternoon. President Donald Trump, Secretary of Housing and Urban Development Ben Carson and Treasury Secretary Steven Mnuchin spoke at a press conference highlighting the benefits of Opportunity Zones.
The new set of regulations clarified that an investor can dispense individual assets within a qualified opportunity fund and still see discounts on their capital gains taxes, provided that those gains remain in a fund. That provision unlocks billions of dollars in capital that had been waiting for indications that multi-asset funds would not create taxable events every time money shifted between assets.
The first wave of regulations had given investors the confidence to proceed with simple transactions involving starting Qualified Opportunity Funds covering only one asset, either a new development or a significant redevelopment within an opportunity zone. Additionally, many big names from private equity, hedge funds and institutional capital have been raising gigantic opportunity funds in anticipation of further guidance.
Furthermore, Carson is chairing the White House Opportunity and Revitalization Council, which was formed last year. During his remarks, he offered more clarity as to how the council, which is made up of officials from 13 federal agencies, will engage with all levels of governments to ensure taxpayer dollars are allocated to help revitalize the communities in opportunity zones.
Page 2 addresses the Outlines of topics to be discussed at the public hearing scheduled for July 9, 2019, at 10 a.m.