Treasury Department Announces It Has Forwarded Proposed O-Zone Regulations to OMB
On September 12, 2018 the Treasury Department announced that its proposed Opportunity Zone Regulations have been forwarded to the Office of Management and Budget ("OMB") for review. This is the final step before the proposed Opportunity Zone Regulations will be issued to the public for comment. Although proposed Regulations once issued by Treasury are not the final word as proposed regulations can be amended or withdrawn following public comment, the proposed Regulations foreshadow what final Regulations might look like.
OMB is required to review the proposed Regulations within 45 days, except that certain regulations related to the Tax Cuts and Jobs Act are eligible for an expedited review of no more than 10 business days, subject to extensions mutually agreed upon by Treasury and OMB. Our understanding is that the proposed Opportunity Zone Regulations may be on the 10-day track with OMB. Treasury has agreed not to publish the proposed Regulations or make them available for public comment until OMB has completed or waived its review. This means our glimpse into what Treasury proposes will likely be available for public comment between the end of September and the end of October.
Sullivan & Worcester’s Opportunity Zones Practice Group will continue to provide updates about the status of the Proposed Regulations, and we will provide commentary and guidance when the proposed Regulations are published.