Over the holiday break, the U.S. Department of the Treasury and Internal Revenue Service (IRS) issued final (and proposed) regulations on the Opportunity Zones (OZ) tax incentive. The regulations modify and finalize the two previous proposed regulations that were issued in October 2018 and April 2019. The Treasury notes that “the final rules provide clarity for Opportunity Funds and their eligible subsidiaries in determining qualification and levels of new investment in Opportunity Zones.” The Treasury also points out that these regulations “provide guidance regarding the types of gains that qualify for Opportunity Zone investments, as well as gains that may be excluded from tax after a 10-year holding period. Treasury also released a FAQ document. The regulations will be published in the Federal Register on January 13 with a 60-day comment period ending on March 14. For more analysis on the regulations, see Michael Novogradac and John Sciarretti’s blog post.