The Department of the Treasury this week released its proposed regulation clarifying aspects of the Opportunity Zones created under President Trump. The Opportunity Zones were created by the Tax Cuts and Jobs Act back in December 2017, ostensibly to encourage investment in 8000+ specific areas across the country by allowing investors to defer, reduce and eliminate capital gains taxes in exchange for investment. Up until this time however, there were not a lot of details available and a first guidance back in October of last year didn’t answer many questions. Now however, with the release on Wednesday of this week of the proposed guidance, there is much more enthusiasm over the potential of Opportunity Zone investment. One of the more significant provisions in the guidance is the creation of four distinct tests to qualify an investment as an Opportunity Zone investment as opposed to the restriction of the first guidance where the qualifying business had to derive 50% of its total gross income from the active conduct of the business within a qualified Opportunity Zone. Now, under the new guidance, a business can qualify by meeting one of four distinct tests under a new 50% rule, including total hours worked, total dollars paid to employees for services performed, the company’s gross income coming from the Opportunity Zone, or “Facts and circumstances”. The latter gives businesses leeway to convince the IRS that the business should quality. Publication in the Federal Register will trigger the 60-day public comment period.