The U.S. Department of Treasury has released notice of new regulations for Opportunity Zones. Route Fifty reports:
The economic development initiative has been in a lengthy ramp-up phase since it was created as part of the 2017 federal tax overhaul. Treasury released an initial set of draft rules last fall that were seen as a big step forward, but left significant issues unaddressed.
The article notes the proposed new regulations appear to help open up the flow of capital to certain business and startups.
“This reg removes a lot of the most obvious impediments that have kept capital on the sidelines to date, particularly on the operating business side,” he [John Lettieri, president and CEO of the Economic Innovation Group] said. “I think it’s going to free up a lot of capital.”
A detailed summary of the regulations published by Michael Novogradac, managing partner of Novogradac, a firm that provides accounting and consulting services, echoes that view. It says one of the biggest takeaways is that the guidance “addresses gating issues” that were limiting investment in operating businesses.
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