Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations 42715 

application for amendment is filed, has 

been constructed, and is proposed to 

have a total installed generating 

capacity of 10 MW or less—Exhibit E, F, 

and G under § 4.61; and 

(5) For amendment of a license for a 

water power project that, at the time the 

application is filed, has been 

constructed and is proposed to have a 

total installed generating capacity of 

more than 10 MW—Exhibits A, B, C, D, 

E, F, and G under § 4.51. 

* * * * * 

§ 4.401 [Amended] 

■ 10. In § 4.401, remove paragraph (f)(3). 

PART 5—INTEGRATED LICENSE 

APPLICATION PROCESS 

■ 11. The authority citation for part 5 

continues to read as follows: 

Authority: 16 U.S.C. 792–828c, 2601–2645; 

42 U.S.C. 7101–7352. 

■ 12. In § 5.18, revise paragraph (a)(5)(i) 

to read as follows: 

§ 5.18 Application content. 

(a) * * * 

(5) * * * 

(i) License for a minor water power 

project and a major water power project 

10 MW or less: § 4.61 of this chapter 

(General instructions, initial statement, 

and Exhibits A, F, and G); 

* * * * * 

[FR Doc. 2021–15511 Filed 8–4–21; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9889] 

RIN 1545–BO4 

Investing in Qualified Opportunity 

Funds; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations; correction. 

SUMMARY: This document contains 

corrections to Treasury Decision 9889, 

which was published in the Federal 

Register on Monday, January 13, 2020. 

Treasury Decision 9889 contained final 

regulations under the Internal Revenue 

Code (Code) that govern the extent to 

which taxpayers may elect the Federal 

income tax benefits with respect to 

certain equity interests in a qualified 

opportunity fund (QOF). 

DATES: These corrections are effective 

on August 5, 2021 and applicable on or 

after January 13, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Concerning section 1400Z–2 and these 

regulations generally, Harith J. Razaa, 

(202) 317–7006, or Kyle C. Griffin, (202) 

317–4718, of the Office of Associate 

Chief Counsel (Income Tax and 

Accounting). These numbers are not 

toll-free numbers. 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9889) that 

are the subject of this correction are 

under section 1400Z–2 of the Code. 

Need for Correction 

As published on January 13, 2020 (85 

FR 1866) the final regulations (TD 9889) 

contain errors that need to be corrected. 

Correction of Publication 

Accordingly, the final regulations (TD 

9889) that are the subject of FR Doc. 

2019–27846, appearing on page 1866 in 

the Federal Register of January 13, 

2020, are corrected as follows: 

1. On page 1897, second and third 

columns, removing the fourth through 

the sixth sentences of the last paragraph. 

2. On page 1923, first column, the first 

full paragraph is corrected to read: ‘‘As 

set forth in the final regulations, the 62- 

month working capital safe harbor 

provides that, during the maximum 62- 

month covered period, (1) NQFP in 

excess of the five-percent NQFP 

limitation will not cause a trade or 

business to fail to qualify as a qualified 

opportunity zone business, and (2) gross 

income earned from the trade or 

business will be counted towards 

satisfying the 50-percent gross income 

requirement (each of clauses (1) and (2) 

function in a manner similar to the 31- 

month working capital safe harbor). In 

addition, the regulations provide 

additional flexibility for entities 

utilizing the working capital safe harbor. 

First, for start-up entities, the 62-month 

working capital safe harbor provides 

that, during the maximum 62-month 

covered period, if property of an entity 

that would otherwise be NQFP is treated 

as being a reasonable amount of working 

capital under the safe harbor, the entity 

satisfies the requirements of section 

1400Z–2(d)(3)(A)(i) only during the 

working capital safe harbor period(s) 

with regard to such property. However, 

the final regulations make clear that 

such property is not and will never be 

qualified opportunity zone business 

property for any purpose. Second, for 

any eligible entity utilizing the working 

capital safe harbor, if tangible property 

is expected to be qualified opportunity 

zone business property pursuant to the 

written plan, such tangible property is 

treated as qualified opportunity zone 

business during the working capital safe 

harbor test for purposes of section 

1400Z–2(d)(3). Under the 62-month 

working capital safe harbor, intangible 

property purchased or licensed with 

working capital covered by the safe 

harbor, and pursuant to the plan 

submitted with respect to that safe 

harbor, will count towards the 

satisfaction of the 40-percent intangible 

property use test.’’ 

3. On page 1926, third column, the 

second sentence of the first full 

paragraph, the language ‘‘In general, the 

final regulations permit a qualified 

opportunity zone business to treat 

tangible property for which working 

capital covered by the 31-month 

working capital safe harbor is expended 

as (i) used in the trade or business of the 

qualified opportunity zone business, 

and (ii) qualified opportunity zone 

business property throughout the period 

during which such working capital is 

covered by the safe harbor.’’ is corrected 

to read ‘‘In general, the 62-month 

working capital safe harbor under the 

final regulations provides that, during 

the maximum 62-month covered period, 

if property of a start-up entity that 

would otherwise be NQFP is treated as 

being a reasonable amount of working 

capital under the safe harbor, the startup entity satisfies the requirements of 

section 1400Z–2(d)(3)(A)(i) only during 

the working capital safe harbor period(s) 

with regard to such property. However, 

the final regulations make clear that 

such property is not qualified 

opportunity zone business property for 

any other purpose. See part V.N.3.c of 

this Summary of Comments and 

Explanation of Revisions describing the 

62-month working capital safe harbor 

set forth in § 1.1400Z2(d)–1(d)(3)(vi).’’. 

4. On page 1926, third column, the 

first through the sixth line from the 

bottom of the first full paragraph, the 

language ‘‘capital covered by the 31- 

month working capital safe harbor are 

not, following the conclusion of the 

final safe harbor period, treated as 

tangible property for purposes of 

applying the 70-percent tangible 

property standard.’’ is corrected to read 

‘‘capital covered by the 62-month 

working capital safe harbor are not, 

following the conclusion of the final 

safe harbor period, treated as qualified 

opportunity zone business property for 

purposes of applying the 70-percent 

tangible property standard. Because 

working capital is not tangible property, 

working capital covered by the 62- 

month safe harbor cannot be treated as 

qualified opportunity zone business 


khammond on DSKJM1Z7X2PROD with RULES
42716 Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations 

property under the proposed regulations 

or the final regulations except as 

provided in section 1.1400Z2(d)– 

1(d)(3)(vi)(D).’’. 

Oluwafunmilayo P. Taylor, 

Federal Register Liaison, Publications and 

Regulations Branch, Legal Processing 

Division, Associate Chief Counsel (Procedure 

and Administration). 

[FR Doc. 2021–16664 Filed 8–4–21; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9889] 

RIN 1545–BO4 

Investing in Qualified Opportunity 

Funds; Correcting Amendment 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendments. 

SUMMARY: This document contains 

corrections to Treasury Decision 9889, 

which was published in the Federal 

Register on Monday, January 13, 2020. 

Treasury Decision 9889 contained final 

regulations under the Internal Revenue 

Code (Code) that govern the extent to 

which taxpayers may elect the Federal 

income tax benefits with respect to 

certain equity interests in a qualified 

opportunity fund (QOF). 

DATES: These corrections are effective 

on August 5, 2021 and applicable on or 

after January 13, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Concerning section 1400Z–2 and these 

regulations generally, Harith J. Razaa, 

(202) 317–7006, or Kyle C. Griffin, (202) 

317–4718, of the Office of Associate 

Chief Counsel (Income Tax and 

Accounting). These numbers are not 

toll-free numbers. 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9889) that 

are the subject of this correction are 

under section 1400Z–2 of the Code. 

Need for Correction 

As published on January 13, 2020 (85 

FR 19082) the final regulations (TD 

9889) contain errors that need to be 

corrected. 

List of Subjects in 26 CFR Part 1 

Income Taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendments: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 1.1400Z2(d)–1 is 

amended by revising paragraphs (a)(3) 

and (d)(3)(vi)(D) to read as follows: 

§ 1.1400Z2(d)–1 Qualified opportunity 

funds and qualified opportunity zone 

businesses. 

* * * * * 

(a) * * * 

(3) Self decertification of a QOF. If a 

QOF chooses to decertify as a QOF, the 

self-decertification must be effected in 

such form and manner as may be 

prescribed by the Commissioner in IRS 

forms or instructions or in publications 

or guidance published in the Internal 

Revenue Bulletin (see §§ 601.601(d)(2) 

and 601.602 of this chapter.) 

* * * * * 

(d) * * * 

(3) * * * 

(vi) * * * 

(D) Safe harbor for working capital 

and property on which working capital 

is being expended—(1) Working capital 

for start-up businesses. For start-up 

businesses utilizing the working capital 

safe harbor, if paragraph (d)(3)(v) of this 

section treats property of an entity that 

would otherwise be nonqualified 

financial property as being a reasonable 

amount of working capital because of 

compliance with the three requirements 

of paragraphs (d)(3)(v)(A) through (C) of 

this section, the entity satisfies the 

requirements of section 1400Z– 

2(d)(3)(A)(i) only during the working 

capital safe harbor period(s) for which 

the requirements of paragraphs 

(d)(3)(v)(A) through (C) of this section 

are satisfied; however such property is 

not qualified opportunity zone business 

property for any purpose. 

(2) Tangible property acquired with 

covered working capital. For any 

eligible entity, if tangible property 

referred to in paragraph (d)(3)(v)(A) is 

expected to satisfy the requirements of 

section 1400Z–2(d)(2)(D)(i) as a result of 

the planned expenditure of working 

capital described in paragraph 

(d)(3)(v)(A), and is purchased, leased, or 

improved by the trade or business, 

pursuant to the written plan for the 

expenditure of the working capital, then 

the tangible property is treated as 

qualified opportunity zone business 

property satisfying the requirements of 

section 1400Z–2(d)(2)(D)(i), during that 

and subsequent working capital periods 

the property is subject to, for purposes 

of the 70-percent tangible property 

standard in section 1400Z–2(d)(3). 

* * * * * 

Oluwafunmilayo P. Taylor, 

Federal Register Liaison, Publications and 

Regulations Branch, Legal Processing 

Division, Associate Chief Counsel (Procedure 

and Administration). 

[FR Doc. 2021–16663 Filed 8–4–21; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2021–0574] 

RIN 1625–AA00 

Safety Zone; Flagship League Mariners 

Ball Fireworks; Presque Isle Bay; Erie, 

PA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

navigable waters in Presque Isle bay in 

Erie, PA. The safety zone is needed to 

protect personnel, vessels, and the 

marine environment from potential 

hazards created by a fireworks display. 

Entry of vessels or persons into this 

zone is prohibited unless specifically 

authorized by the Captain of the Port 

Buffalo or a designated representative. 

DATES: This rule is effective August 20, 

2021, from 8:50 p.m. through 10 p.m. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2021– 

0574 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email MST2 Anthony Urbana, U.S. 

Coast Guard Sector Buffalo via 

telephone 716–843–9342 or email D09- 

SMB-SECBuffalo-WWM@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 


khammond on DSKJM1Z7X2PROD with RULES