On April 7, 2020, the United States Department of the Treasury and the Internal Revenue Service issued final and proposed regulations implementing the “anti-hybrid” rules of Sections 245A(e) and 267A of the Internal Revenue Code of 1986. The final regulations (T.D. 9896) generally track the proposed regulations issued on December 20, 2018 (REG-104352-18), but include certain changes and clarifications to the complex set of rules, including rules addressing interest-free loans, notional interest deductions, withholding taxes, and long-term deferrals of income inclusions. To the benefit of taxpayers, the final regulations also include transitional rules delaying the application of some of the provisions contained therein. The new proposed regulations (REG-106013-19) introduce rules under Section 245A(e) for reducing a controlled foreign corporation’s hybrid deduction account, as well as rules under the anti-conduit regulations addressing issues with equity interests that give rise to deductions and other tax benefits under foreign law.