The Department of the Treasury published proposed versions of the regulations in September 2019 and received comments from the public. Treasury made a number of revisions in response to the comments submitted during the comment period. The preambles to the final rules summarize these changes.
In response to written comments, the final rules update a number of provisions including by:
- adding a definition for “principal place of business;”
- modifying certain criteria to qualify as an “excepted investor;”
- clarifying the application of the “incremental acquisition rule;”
- adjusting the treatment of genetic data within the definition of “sensitive personal data;”
- refining the application to investment funds, including by amending the definition of “substantial interest;”
- modifying the exceptions for certain real estate transactions in airports and maritime ports; and
- refining the geographic coverage relating to certain military installations on appendix A to the real estate regulations.
The rules also include a number of additional illustrative examples and provide clarifying edits in the text of the provisions. Finally, the rule amending the part 800 regulations incorporates many of the provisions of the pilot program regarding critical technologies (published in October 2018), including the mandatory declaration requirement for certain covered transactions involving certain U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or more critical technologies. The mandatory declaration requirement for certain critical technology related transactions was further revised by regulations effective October 15, 2020.