Par. 6. Sections 1.6039K-1 and 1.6039L-1 are added to read as follows:
(a) Definitions —(1) 70-percent tangible property standard. The term 70-percent tangible property standard has the same meaning as in § 1.1400Z2(a)-1(b)(2).
(2) 70-percent use test. The term 70-percent use test has the same meaning as in § 1.1400Z2(a)-1(b)(3).
(3) Applicable qualified opportunity zone business. The term applicable qualified opportunity zone business, or applicable QOZB, means any entity that meets, intends to meet, or was organized for the purposes of meeting, the requirements to be a qualified opportunity zone business as defined in section 1400Z-2(d)(3)(A) and § 1.1400Z2(d)-1(d) that is—
(i) A corporation in which a qualified opportunity fund holds qualified opportunity zone stock; or
(ii) A partnership in which a qualified opportunity fund holds a qualified opportunity zone partnership interest.
(4) Applicable QOZB testing dates. The term applicable QOZB testing dates means the applicable QOZB's 6-month testing date and year-end testing date used for determining if the 70-percent tangible property standard and the 70-percent use test have been met.
(i) Applicable QOZB 6-month testing date. The term applicable QOZB 6-month testing date means the last day of the first 6-month period of the taxable year of the applicable QOZB.
(ii) Applicable QOZB year-end testing date. The term applicable QOZB year-end testing date means the last day of the taxable year of the applicable QOZB.
(5) Full-time equivalent employee. The term full-time equivalent employee has the same meaning as in § 1.6039K-1(a)(4).
(6) Qualified opportunity fund. The term qualified opportunity fund, or QOF, means, with respect to an entity's taxable year or portion thereof, any entity that files a self-certification under § 1.1400Z2(d)-1(a)(2)(i) for such taxable year or a portion thereof. For purposes of this section, an entity that files a self-certification under § 1.1400Z2(d)-1(a)(2) for its taxable year is treated as certified as a QOF for the portion of the taxable year beginning on the effective date identified in that self-certification.
(7) Qualified opportunity zone. The term qualified opportunity zone, or QOZ, has the same meaning as in section 1400Z-1(a) and § 1.1400Z2(a)-1(b)(28).
(8) Qualified opportunity zone business property. The term qualified opportunity zone business property, or QOZ business property, has the same meaning as in section 1400Z-2(d)(2)(D) and § 1.1400Z2(a)-1(b)(30).
(9) Qualified opportunity zone partnership interest. The term qualified opportunity zone partnership interest, or QOZ partnership interest, has the same meaning as in section 1400Z-2(d)(2)(C) and § 1.1400Z2(d)-1(c)(3).
(10) Qualified opportunity zone stock. The term qualified opportunity zone stock, or QOZ stock, has the same meaning as in section 1400Z-2(d)(2)(B) and § 1.1400Z2(d)-1(c)(2).
(11) Real property. The term real property has the same meaning as in § 1.6039K-1(a)(11).
(12) Relevant QOF. The term relevant QOF means—
(i) With respect to an applicable QOZB that is a corporation, any QOF that holds QOZ stock in such corporation; and
(ii) With respect to an applicable QOZB that is a partnership, any QOF that holds QOZ partnership interest(s) in such partnership.
(13) Residential unit. The term residential unit has the same meaning as in § 1.6039K-1(a)(13).
(14) Tangible personal property. The term tangible personal property has the same meaning as in § 1.48-1(c).
(b) Requirement to furnish qualified opportunity zone business statement. Every applicable QOZB must furnish to each relevant QOF a written statement (QOZB statement), signed under penalties of perjury, for each calendar year containing the information set forth in paragraphs (b)(1) through (8) of this section (as applicable).
(1) The name, address, and taxpayer identification number of the applicable QOZB;
(2) The percent of equity ownership or (if applicable) capital or profits interest in the applicable QOZB by the relevant QOF as of December 31 of the calendar year ending with or within the applicable QOZB's taxable year;
(3) Total value of tangible property (including tangible property that is qualified opportunity zone business property and tangible property that is not qualified opportunity zone business property) held by the applicable QOZB as of the applicable QOZB testing dates;
(4) The population census tract number(s) in which the QOZ business property directly owned or leased by the applicable QOZB is used, and for each of these census tracts—
(i) The physical address of the QOZB's business activity;
(ii) The North American Industry Classification System (NAICS) code that applies to the QOZB's business activity;
(iii) As of the applicable QOZB testing dates—
(A) The total value of QOZ business property directly owned by the applicable QOZB; and
(B) The total value of QOZ business property directly leased by the applicable QOZB;
(iv) The total value of QOZ business property directly owned or leased by the applicable QOZB that is real property as of December 31 of the calendar year ending with or within the applicable QOZB's taxable year;
(v) The number of residential units (if any) as of December 31 of the calendar year ending with or within the applicable QOZB's taxable year;
(vi) The approximate average monthly number of full-time equivalent employees of the applicable QOZB whose primary work location is within the population census tract for the calendar year ending with or within the applicable QOZB's taxable year;
(vii) The first date that any QOZ business property was acquired by purchase or leased by the applicable QOZB;
(viii) Whether there is any QOZ business property that the applicable QOZB is substantially improving, as provided in section 1400Z-2(d)(2)(D)(ii), and, if applicable, the date on which that improvement began; and
(ix) Whether the applicable QOZB is utilizing a working capital safe harbor, as provided in § 1.1400Z2(d)-1(d)(3)(v), and, if applicable, the date that the working capital safe harbor is expected to end;
(5) For the applicable QOZB's taxable year, an attestation that the applicable QOZB meets all the requirements of section 1400Z-2(d)(3) and § 1.1400Z2(d)-1(d) including that—
(i) The applicable QOZB meets the 70-percent tangible property standard;
(ii) The applicable QOZB meets the gross income requirement under section 1400Z-2(d)(3)(A)(ii) and § 1.1400Z2(d)-1(d)(3)(i);
(iii) The applicable QOZB meets the use of intangible property requirement under section 1400Z-2(d)(3)(A)(ii) and § 1.1400Z2(d)-1(d)(3)(ii);
(iv) The applicable QOZB satisfies the non-qualified financial property limitation under section 1400Z-2(d)(3)(A)(ii) and § 1.1400Z2(d)-1(d)(3)(iv); and
(v) The trade or business of the applicable QOZB is not described in section 144(c)(6)(B);
(6) If the applicable QOZB cannot provide the attestation referenced in paragraph (b)(5) of this section because the applicable QOZB does not meet all the requirements of section 1400Z-2(d)(3) and § 1.1400Z2(d)-1(d), an attestation that the applicable QOZB is utilizing the cure period, as defined in § 1.1400Z2(d)-1(d)(6), to correct its failure to meet the requirements of section 1400Z-2(d)(3) and § 1.1400Z2(d)-1(d) and the month in which the stock or partnership interest of the applicable QOZB lost its qualification as qualified opportunity zone stock or a qualified opportunity zone partnership interest;
(7) Whether the applicable QOZB used the applicable financial statement valuation method as defined in § 1.1400Z2(d)-1(b)(3) or the alternative valuation method as defined in § 1.1400Z2(d)-1(b)(4) to value the property necessary to provide the information set forth in paragraphs (b)(1) through (8) of this section; and
(8) Such other information as required to be reported by the relevant QOF with respect to the applicable QOZB as set forth in Form 8996 (or any successor form) or instructions.
(c) [Reserved]
(d) Time for and manner of furnishing statements —(1) Time for furnishing. Every applicable QOZB required to furnish a QOZB statement to one or more relevant QOFs under paragraph (b) of this section must furnish such statements on or before the 1st day of the second month following the close of the applicable QOZB's taxable year.
(2) Manner of furnishing. An applicable QOZB required by paragraph (b) of this section to furnish a QOZB statement may furnish the statement using any form that includes all the information set forth in paragraph (b) of this section. Notwithstanding the previous sentence, if the IRS prescribes a form for the QOZB statement, the applicable QOZB must use that prescribed form or a form that contains provisions that are substantially similar to those in the prescribed form. A QOZB statement is considered to be furnished to a relevant QOF if it is mailed to the last known address of the relevant QOF and is considered to be furnished on the date that it is so mailed. Alternatively, if the relevant QOF consents in writing to receiving the QOZB statement in an electronic format, an applicable QOZB may furnish the QOZB statement in an electronic format in lieu of a paper format. An applicable QOZB that electronically furnishes a QOZB statement to a relevant QOF pursuant to the relevant QOF's consent is treated as furnishing the QOZB statement on the date that the statement is electronically transmitted to the relevant QOF.
(e) QOZB statements. For provisions for failure to furnish timely a correct payee statement, see § 301.6722 of this chapter. See § 301.6724-1 of this chapter for the waiver of a penalty if the failure is due to reasonable cause and is not due to willful neglect.
(f) Applicability date. This section applies to QOZB statements required to be furnished on or after [date of publication of final regulations in the Federal Register ].