News

OZ 2.0 is happening now.

Week-by-week coverage of Treasury guidance, state filings, eligibility tools, and everything else that matters for OZ investors.

The Opportunity Zone program entered a new era on July 4, 2025 when the One Big Beautiful Bill Act (OBBBA, Public Law 119-21) was signed into law. OZ is now permanent, and 2026 is the year the new designation map takes shape. This page tracks what’s happening week by week — Treasury guidance, governor filings, state eligibility tools, fund activity, and anything else that matters for OZ investors.

Where things stand today

As of April 17, 2026:

  • OBBBA is law. Signed July 4, 2025. OZ is a permanent part of the Internal Revenue Code.
  • Treasury published the OZ 2.0 eligibility framework. Final guidance on governor nomination process released earlier in 2026.
  • Novogradac published a national OZ 2.0 eligible tracts map identifying approximately 25,000+ census tracts that could be designated.
  • Delaware launched its state eligibility mapping tool on April 15, 2026 — joining a small but growing list of states with public OZ 2.0 selection tools.
  • Governor nominations open July 1, 2026. The 90-day window runs through September 30, 2026. Each state can nominate up to 25% of its eligible tracts.
  • New OZ 2.0 designations effective January 1, 2027. Investments into QOFs on or after that date receive OZ 2.0 benefits.
  • December 31, 2026 deferral recognition date is unchanged for existing OZ 1.0 investments.

The OZ 2.0 calendar

NOW (April 17, 2026)          July 1, 2026       Sept 30, 2026      Jan 1, 2027
         |                         |                  |                 |
   States prepare         90-day governor     Treasury reviews     OZ 2.0 effective
   selection criteria     nomination window   & certifies          New QOFs get
   Launch eligibility     opens nationwide    nominations          new benefits
   tools

What to watch for in the next 90 days

Before July 1, 2026:

  • State economic development offices finalizing internal selection processes
  • Additional states launching public eligibility mapping tools
  • Treasury expected to release additional guidance on qualified rural QOFs and the enhanced 30% rural bonus
  • OZ fund sponsors forming new QOFs positioned for OZ 2.0 deployment

July 1 – September 30, 2026 (governor nomination window):

  • Each state submits final tract nominations to Treasury
  • Rolling daily coverage of filings — which states file first, which tracts are selected, and any surprises
  • Real-time updates to the eligibility map as nominations are filed

October – December 2026:

  • Treasury review and certification of state nominations
  • Publication of the final OZ 2.0 designated tract map
  • Fund sponsors finalizing their OZ 2.0 investment strategies

January 1, 2027:

  • OZ 2.0 designations officially take effect
  • First wave of QOF investments under the new rules

Recent developments

April 15, 2026 — Delaware launches state eligibility tool

Delaware Small Business released the Delaware Opportunity Zone 2.0 Mapping Tool, a public interactive map showing all Delaware census tracts eligible for OZ 2.0 designation. The tool lets Delaware residents, developers, and investors check whether specific properties fall within eligible tracts ahead of Governor Matt Meyer’s nomination filing.

Delaware is the 15th state to publish a public OZ 2.0 eligibility tool.

April 1, 2026 — Treasury publishes final OZ 2.0 nomination framework

Treasury issued its final framework for governor nominations under OBBBA. Key provisions:

  • 90-day window opens July 1, 2026
  • Each state may nominate up to 25% of eligible tracts
  • Contiguous tract option eliminated
  • Median family income threshold tightened from 80% to 70%
  • Puerto Rico blanket designation eliminated

March 12, 2026 — Novogradac publishes national eligible tracts map

Novogradac, a leading tax and accounting firm specializing in community investment tax credits, released a national map of approximately 25,000+ census tracts eligible for OZ 2.0 designation under OBBBA’s tightened criteria. Expected reduction from 8,764 OZ 1.0 tracts to approximately 6,500 OZ 2.0 tracts.

November 21, 2025 — Plante Moran publishes OZ 2.0 planning guide

Plante Moran released an authoritative summary of OBBBA’s changes to the OZ program, clarifying that existing OZ 1.0 investments are not migrated to OZ 2.0 rules and that the December 31, 2026 deferred gain recognition date is unchanged.

July 4, 2025 — One Big Beautiful Bill Act signed into law

OBBBA (Public Law 119-21) signed by President Trump. Opportunity Zones made permanent. Rolling 5-year deferral replaces fixed 2026 deadline for investments made on or after January 1, 2027. New 30% basis step-up for qualified rural QOFs. Rolling 30-year cap on 10-year exclusion with automatic step-up.

Track your state

The National OZ 2.0 Nomination Tracker shows the selection process status for all 50 states plus the District of Columbia and U.S. territories. Each state has its own zones page with:

  • Current selection status
  • Published selection criteria (if available)
  • Link to state eligibility mapping tool (if launched)
  • Number of eligible tracts
  • Expected nomination timeline
  • Email signup for state-specific alerts

Subscribe to updates

OZ 2.0 is a calendar-driven event. The nomination window opens July 1, 2026 and runs 90 days. State filings will happen on a rolling basis, and each one is a material event for investors, developers, and real estate sponsors with interests in that state.

Subscribe for OZ 2.0 alerts — choose the states you want to follow, and we’ll send you an email when each state files its nominations.


Sources: Plante Moran: The OBBB and Opportunity Zones 2.0; Governing: A Strategic Playbook for Opportunity Zones 2.0; Treasury: Qualified Opportunity Zones; State of Delaware: DSB Launches OZ 2.0 Mapping Tool; Novogradac OZ 2.0 resource center. Not tax advice.

Timeline

July 18, 2026 · State Process

Citrus Heights, California nominates three commercial tracts for Opportunity Zone 2.0

The Citrus Heights, California City Council unanimously approved a resolution nominating three eligible census tracts for Opportunity Zone 2.0 designation, targeting the city's commercial cores. The tracts cover the Sunrise Mall area, the Stock Ranch commercial district (City Hall, Sam's Club, Safeway), and the Greenback Lane/Auburn Boulevard corridor. The nominations go to California's GO-Biz, which will decide which of the state's eligible tracts to forward to the U.S. Treasury for final designation, effective January 1, 2027.

July 16, 2026 · State Process

Vermont recommends 25 communities for Opportunity Zone 2.0 designation

Vermont's Agency of Commerce and Community Development has recommended 25 communities as Opportunity Zones for Governor Phil Scott's consideration, publishing a draft map after months of work with regional economic-development partners. The agency weighed traditional metrics — poverty and unemployment, population and jobs — plus overlap with existing infrastructure and state programs. Public input on the draft map is open through July 24; if the governor approves, the recommendations go to the U.S. Treasury for designation, effective January 1, 2027.

July 16, 2026 · State Process

North Carolina weighs which of 807 eligible tracts to nominate for Opportunity Zone 2.0

North Carolina is choosing among 807 eligible low-income census tracts for Opportunity Zone 2.0 designation, with the state able to nominate up to 202. Governor Josh Stein directed the North Carolina Department of Commerce to gather public input on which tracts hold the most investment and economic-development potential, aligning the selection with his administration's push to expand housing and attract business. The state's recommendations feed the federal nomination process, with new designations taking effect January 1, 2027.

July 14, 2026 · Investment

Kinect Real Estate Partners launches a single-asset Opportunity Zone fund on a shovel-ready Gresham site

Kinect Real Estate Partners has launched the Gresham OZ Fund, a single-asset Qualified Opportunity Fund backing a transit-oriented multifamily development next to the Gresham Station light-rail stop east of Portland, Oregon. Unlike a blind-pool fund, investors commit to a specific, fully entitled project already under construction. Co-founder BJ Kuula framed it as extending a time-tested real estate strategy to the private-wealth channel. The launch follows Kinect Opportunity Fund II, which closed at $126.5 million in June 2026 — another sign of sponsors bringing shovel-ready OZ deals to market as the OZ 2.0 cycle opens.

July 14, 2026 · State Process

Kern County, California forwards 27 tracts for Opportunity Zone 2.0 nomination

The Kern County Board of Supervisors voted 4-0 to forward 27 census tracts for Opportunity Zone 2.0 review — 15 in Bakersfield plus one each in Arvin, California City, Delano, McFarland, Ridgecrest, Shafter, and Wasco, and seven in unincorporated areas including Boron, Buttonwillow, Lamont, Mojave, Oildale, Rosamond, and the Taft-Maricopa region. The nominations head to California's GO-Biz and then to the federal government. The state will take public comment on all its nominations next month before forwarding recommendations to Treasury.

July 13, 2026 · Investment

Bonaventure breaks ground on a 320-unit Opportunity Zone multifamily project in Norfolk

Bonaventure has broken ground on Attain at Newtown, an $85.3 million, 320-unit Class A multifamily development inside a federally designated Qualified Opportunity Zone in Norfolk, Virginia. The project is capitalized with Cafritz Asset Management, a private family office, plus long-term HUD Section 221(d)(4) financing originated by Greystone, with first units expected in Fall 2027. Bonaventure, which reports more than $2.9 billion in assets under management, is targeting a Hampton Roads submarket facing sustained housing-supply constraints. It is a concrete example of institutional OZ capital breaking ground as the OZ 2.0 cycle ramps.

July 13, 2026 · State Process

Yavapai County, Arizona backs two Verde Valley tracts for Opportunity Zone 2.0

The Yavapai County Board of Supervisors voted 4-1 to recommend two Verde Valley census tracts for Opportunity Zone 2.0 designation: one in Clarkdale (Census Tract 19.01) and one in Cottonwood (Tract 20.7) that edges into Clarkdale. The county is advancing the tracts to draw private, capital-gains-deferred investment into the area. Notably, a previously eligible Camp Verde tract no longer qualifies — rising incomes and property values pushed it above the federal low-income threshold, a reminder that OZ 2.0's tighter criteria are reshaping the eligibility map.

July 13, 2026 · Industry Analysis

Analysis: how Opportunity Zone estate planning changes (and doesn't) under OBBBA

An ArentFox Schiff alert lays out the estate-planning angle on Qualified Opportunity Zones after the One Big Beautiful Bill Act, noting that most QOZ estate-planning rules from the 2017 law carry over largely unchanged. It covers the treatment of QOF interests at death, planning with gifts and grantor trusts, and holding-period considerations for heirs, alongside the December 31, 2026 deferred-gain recognition date (measured against the lower of the deferred gain or the fund interest's fair market value). One permanent change: OBBBA locks in the 10% five-year basis step-up but eliminates the former additional 5% step-up, capping the in-hold basis benefit at 10%. The takeaway: OZ is now a durable estate-planning tool, but the mechanics require careful, ongoing tracking of QOF interests.

July 10, 2026 · State Process

Sonora, California passes a resolution backing Opportunity Zone designation for its downtown

The Sonora City Council approved a resolution supporting a federal Opportunity Zone designation for Downtown Sonora, aiming to spur reinvestment in older building stock, adaptive reuse, housing near jobs, walkable mixed-use development, and historic-downtown revitalization. The resolution urges pairing the downtown tract with other eligible Tuolumne County rural tracts — including nearby Columbia — for a broader regional designation supporting housing, workforce development, tourism, and rural infrastructure. California, which currently has 879 Opportunity Zones (two in Tuolumne County), moved its local submission deadline up five days to July 20, 2026.

July 9, 2026 · Industry Analysis

Analysis: with Opportunity Zones now permanent, the 'hurry before 2026' playbook is obsolete

An Accounting Today analysis argues that advisors' long-standing 'hurry, the benefit ends in 2026' framing is now wrong. Under the One Big Beautiful Bill Act, Opportunity Zones are permanent, and December 31, 2026 is merely the mandatory deferred-gain inclusion date for many pre-OBBBA investors — not a program sunset. The piece flags the structural shifts: designations now run on recurring 10-year cycles (the first post-OBBBA round began July 1, 2026, effective through 2036); qualified rural opportunity funds carry an enhanced 30% basis step-up at five years versus the standard 10%; and post-2026 investments follow a rolling five-year deferral rather than the fixed 2026 date, with the 10-year fair-market-value step-up intact. The takeaway for advisors: treat OZ as an ongoing capital-gains planning regime, not a one-time, urgency-driven play.

July 9, 2026 · Investment

Ellavoz and Allivate Impact Capital partner to scale Opportunity Zone investments

Two impact-investment firms — Ellavoz Impact Capital and Allivate Impact Capital — announced a strategic partnership to originate and execute high-impact Opportunity Zone commercial real estate investments across the U.S., targeting market returns alongside measurable community impact. The tie-up combines Ellavoz's community-development and asset-management focus (with residential real estate activity in Florida and New Jersey) with Allivate's structured-capital approach that aligns private, public, and nonprofit money in underinvested markets. The firms say the aim is a differentiated pipeline of OZ deals in underserved, high-growth areas — a sign of institutional impact capital gearing up as the OZ 2.0 cycle opens.

Read more → · Source: irei.com
July 8, 2026 · Investment

HUD Secretary Scott Turner visits a Pennsylvania Opportunity Zone project

U.S. Housing and Urban Development Secretary Scott Turner visited Hazle Township, Pennsylvania to spotlight the federal Opportunity Zone program, joining Rep. Rob Bresnahan and local officials for a roundtable on the CrossRoads Project along Route 424. The roughly $500 million redevelopment is turning former mine-scarred land into a hub for advanced manufacturing and logistics, with seven buildings under construction. Turner cited HUD figures crediting Opportunity Zones with nearly $100 billion in investment, more than 500,000 jobs, and over 400,000 homes nationally. Local leaders also raised the Greater Hazleton area's housing shortage and overcrowding.

July 8, 2026 · State Process

San Rafael weighs an Opportunity Zone for its Canal district amid displacement concerns

San Rafael, California is weighing whether to nominate its Canal district for Opportunity Zone 2.0 status — one of five eligible census tracts in the city (three in the Canal/Southeast area, one Downtown, one near Andersen/Woodland). Officials describe the incentive as a double-edged sword: it could draw investment to an economically distressed area but also accelerate displacement in the heavily immigrant Canal neighborhood. The City Council is weighing a temporary urgency ordinance that would bar 'substantial rehabilitation' as a cause for permanent eviction and require relocation assistance for affected tenants. California localities submit recommendations to GO-Biz; Treasury certifies nominations in November, with the new map effective January 1, 2027.

July 7, 2026 · Industry Analysis

Analysis: OZ 2.0's transition rules put new pressure on 2026 exit and development timing

A National Law Review analysis frames IRS Notice 2026-40 as 'closer to a reset than an extension' for existing Opportunity Zone investments, warning that timing and documentation now matter far more than in the program's early years. The December 31, 2026 deadline to recognize deferred gains still stands; if a sale triggers gain at the fund level, reinvesting into a new QOF within 180 days preserves the deferral but resets the 10-year clock — trading away the program's signature tax-free-appreciation benefit. Operating projects that acquire property after 2026 must finalize a written working-capital plan by year-end and meet specific thresholds; routine maintenance qualifies, but new phases or adjacent expansion generally will not. The takeaway for OZ 1.0 investors: finalize exit and reinvestment plans now.

July 6, 2026 · State Process

Midland, Texas moves to file its first Opportunity Zone application

The Midland Development Corporation is backing an application to designate eligible Midland, Texas census tracts as Opportunity Zones under the OZ 2.0 program, following the City Council's June 23 vote to ask Gov. Greg Abbott to nominate the city's tracts. The MDC will file the application; the governor forwards nominations to the U.S. Treasury for certification, with any designation taking effect January 1, 2027. Midland County received no Opportunity Zone designations in the original 2018 round, so a designation this cycle would be the county's first.

July 2, 2026 · State Process

Arkansas opens Opportunity Zone 2.0 nominations — up to 78 zones to be designated

The Arkansas Economic Development Commission has opened nominations for the state's next round of Opportunity Zones, framing OZ 2.0 as a tool to spur private investment in economically distressed and rural communities through federal tax incentives. Under the 25% state cap, Arkansas can designate up to 78 zones, which Governor Sarah Huckabee Sanders will forward for federal approval; the state's first round produced 85 designated zones. Sanders said Opportunity Zones are transforming communities across the country and that she is eager to see investment reach the parts of Arkansas that need it most. Communities apply through the AEDC ahead of the state's nomination deadline.

July 1, 2026 · Federal Guidance

Treasury opens the OZ 2.0 designation cycle — governors have 90 days to nominate tracts

The U.S. Treasury Department formally opened the Opportunity Zone 2.0 designation cycle on July 1, 2026. Governors now have 90 days, with a single 30-day extension available, to nominate eligible census tracts drawn from the 25,332 low-income community tracts identified in Revenue Procedure 2026-14 — 8,334 of them entirely rural. By law, no state may designate more than 25% of its low-income community tracts. The new Opportunity Zones take effect January 1, 2027 and run through December 31, 2036. The move operationalizes the permanent OZ program enacted under the One Big Beautiful Bill Act, which renewed the incentive, added enhanced benefits for rural investment, and established a 10-year redesignation cycle.

July 1, 2026 · State Process

Steubenville, Ohio must choose an Opportunity Zone census tract by July 10

Steubenville officials are weighing which part of the city to put forward for Opportunity Zone designation, with four eligible census tracts on the table and a July 10 deadline to decide. City leaders laid out the options at an economic development meeting, framing the designation as a way to open the door to new private investment. Second Ward Councilman Tracy McManamon said the city is gathering as much information as possible before choosing. Steubenville's pick feeds Ohio's statewide OZ 2.0 nomination process.

June 30, 2026 · Investment

Madison Capital Group launches a $36.2M Qualified Opportunity Fund to redevelop Reno's former Harrah's

Madison Capital Group has launched Madison Reno Hotel QOF, LLC, a Qualified Opportunity Fund seeking about $36.2 million from accredited investors to reposition the former Harrah's Resort and Casino in downtown Reno into a 292-room hotel. The property anchors Reno Revival, a 1.3 million-square-foot mixed-use redevelopment spanning multifamily, retail, office, and entertainment. CEO Ryan Hanks pointed to Reno's demographic trends, tourism demand, and business migration as the thesis, framing the fund as a tax-advantaged way to back a transformative hospitality asset. It is one of the first new QOF launches to surface as the OZ 2.0 era begins.

June 30, 2026 · State Process

Charles County, Maryland prioritizes Waldorf and Newburg tracts for Opportunity Zone status

Charles County, Maryland has ranked its Opportunity Zone 2.0 recommendations, putting two Waldorf tracts and one in Newburg at the top of its five eligible census tracts. The Waldorf tracts sit within the county's Waldorf economic opportunity zone near Route 301 and Old Washington Road, while the Newburg focus is development near the Morgantown Generating Station along the Route 301 corridor. Maryland counties can submit nominations through August 7, and the governor must forward up to 113 tracts to the U.S. Treasury by September 29. Designations take effect January 1, 2027.

June 30, 2026 · State Process

Wabash Valley RDA moves to pursue Opportunity Zone incentives across west-central Indiana

The Wabash River Regional Development Authority board voted to pursue Opportunity Zone incentives for federally eligible census tracts across its west-central Indiana region — Clay, Knox, Parke, Sullivan, Vermillion, and Vigo counties. The RDA framed Opportunity Zones as a tool to draw private capital for economic development, jobs, housing, and revitalization in the low-income region. Specific tract nominations are still to come, with Indiana's statewide submission deadline set for July 17. The move aligns the multi-county authority with the state's broader OZ 2.0 push.

June 29, 2026 · State Process

Indiana opens Opportunity Zone 2.0 nominations — 501 eligible tracts, 126 to be designated

Indiana has opened its Opportunity Zone 2.0 nomination window, with the public able to submit recommendations through July 17, 2026. The Indiana Economic Development Corporation is running the process; of 501 eligible census tracts statewide, Governor Mike Braun will forward up to 126 for federal designation. State officials say the revamped program leans harder into rural communities and adds accountability measures and stronger incentives to pull private capital into distressed areas. The new designations would take effect January 1, 2027 and run for 10 years.

Read more → · Source: wbiw.com
June 26, 2026 · State Process

Presidio County, Texas votes to apply for an Opportunity Zone 2.0 designation

Presidio County commissioners in far West Texas voted to apply for an Opportunity Zone designation to draw private investment to the rural border county through federal capital-gains tax incentives. As county officials noted, the designation brings no direct grant money and requires no local tax abatement or county funding — the benefit flows to investors who deploy capital gains through qualified opportunity funds into the designated tracts. Texas' new OZ 2.0 designations take effect January 1, 2027 and run for 10 years. The vote came alongside the county's extension of a local disaster declaration tied to New World screwworm concerns.

June 25, 2026 · State Process

Wyoming's Opportunity Zone 2.0 working group sets a July 14 stakeholder webinar

Wyoming's Opportunity Zones 2.0 Working Group, convened by Governor Mark Gordon, will host a public webinar on July 14 (noon to 1 p.m. MDT, via Zoom) to walk stakeholders through the differences between the legacy OZ 1.0 program and the new OZ 2.0 framework and to gather input on the state's census-tract selections. The session, led by Connor Christensen of the Wyoming Business Council and Seth Ulvestad from the governor's office, targets county commissioners, mayors, tribal leaders, economic developers, and project sponsors, and will cover the tightened federal income thresholds, the enhanced rural incentive, and infrastructure data collection. It lands as the federal nomination window opens July 1, with states' recommendations due to the U.S. Treasury by September 28, 2026.

June 25, 2026 · State Process

Butte County, California recommends a Berry Creek-area tract for Opportunity Zone 2.0 status

The Butte County Board of Supervisors voted to recommend Census Tract 24-02, running from Berry Creek east to the county line, for nomination under California's Opportunity Zones 2.0 program. Deputy Chief Administrative Officer Katie Simmons said the move is meant to spotlight the wildfire-affected Berry Creek area for private investment from corporations and individuals with capital gains to redeploy. County staff had also floated eligible rural tracts in Magalia and Butte Valley, but supervisors advanced Tract 24-02. California local governments have until July 25 to submit recommendations to the Governor's Office of Business and Economic Development (GO-Biz); designations would take effect January 1, 2027.

June 24, 2026 · State Process

Winona, Minnesota applies to designate two new Opportunity Zone 2.0 tracts

The City of Winona, Minnesota is applying to designate two census tracts as Opportunity Zones under the OZ 2.0 program: a downtown tract that extends south to Lake Winona and takes in Winona State University, and an East End tract covering industrial parks and major retailers. Development Coordinator Nick Larson said the city is building on its first Opportunity Zone, which it credits with 43 new jobs, more than $250,000 in added local property taxes, and $18 million in increased property values. Applications to the governor are due June 30, with state recommendations to the federal government by the end of September and final designations expected by year-end. A third eligible tract was left out of the city's submission.

June 24, 2026 · State Process

Perham and Fergus Falls, Minnesota pursue Opportunity Zone 2.0 designations

Otter Tail County is backing Opportunity Zone 2.0 bids for two Minnesota cities, Perham and Fergus Falls, to spur housing and economic development in lower-income tracts. A 2025 housing needs analysis put Perham's median household income at about $51,944, roughly 30% below its surrounding market, and identified demand for more than 1,200 additional housing units. County commissioners prioritized Fergus Falls' application ahead of Perham's, though Commissioner Wayne Johnson said the county will work to win the designation for both communities ahead of the state's nomination deadline.

June 24, 2026 · State Process

Roane County, West Virginia officials press their Opportunity Zone case at a state economic summit

Leaders from the Roane County Economic Development Authority attended a state onboarding meeting in Charleston to coordinate the county's push for Opportunity Zone 2.0 designation with West Virginia agency officials. The session was aimed at aligning local nominations with the state process ahead of the federal designation window. The effort continues Roane County's campaign to win OZ status as a tool to attract capital-gains-deferred investment to the rural county.

June 24, 2026 · Legislation

Federal housing bill would steer Opportunity Zone dollars to office-to-housing conversions

A provision in the bipartisan 21st Century ROAD to Housing Act, authored by Rep. Ro Khanna, would direct Opportunity Zone resources toward converting vacant office and commercial buildings into housing. It would give HUD authority to give extra weight to grant applications for projects inside qualified Opportunity Zones and authorize a blighted-building-to-housing conversion pilot under the federal HOME program to help close the gap between conversion costs and finished-home values. Advocates in San Francisco, where roughly 30 million square feet of downtown office space sits underused, see the tools as a way to make stalled conversions pencil out. The July 1 governor nomination window will determine which tracts, and which conversion projects, can tap the funding.

June 19, 2026 · State Process

Ohio: Department of Development opens OZ 2.0 nomination process (deadline July 10)

The Ohio Department of Development has opened its nomination window for the federal Opportunity Zones 2.0 program, with Director Lydia Mihalik announcing the period and giving local stakeholders until 4 p.m. on July 10, 2026 to submit census-tract nominations. Ohio joins the wave of states formalizing OZ 2.0 selection ahead of the federal governor window; the state has roughly 1,032 eligible tracts.

June 19, 2026 · State Process

Texas: Kemah City Council moves to secure an Opportunity Zone designation

Kemah City Council voted unanimously on June 17 to seek state and federal support to designate large areas between FM 2094 and FM 518 as a Qualified Opportunity Zone — city documents note between one-third and one-half of Kemah's land could qualify. Leaders hope OZ status will draw private capital and capital-gains-deferred investment to the Houston-area city. Texas can nominate about a quarter of its roughly 2,420 eligible tracts.

June 18, 2026 · Federal Guidance

IRS releases Notice 2026-40: transitional guidance and proposed-regulation roadmap for OZ 2.0

The Treasury Department and IRS issued Notice 2026-40 on June 18, 2026, announcing their intent to issue proposed regulations for Qualified Opportunity Zones under Internal Revenue Code sections 1400Z-1 and 1400Z-2 as amended by the One Big Beautiful Bill Act. The notice provides transitional rules in four areas while formal regulations are drafted: how the new OZ 2.0 designations work under section 1400Z-1; investor treatment of gains realized on or before December 31, 2026 versus invested on or after January 1, 2027 (including inclusion-event gain); rules for tangible property a fund acquires after December 31, 2026 in tracts that were designated under the 2017 law but not redesignated under OBBBA; and compliance tests once a zone's designation period ends. Treasury said the final regulations are expected to apply to tax years ending after June 18, 2026 — making this the most consequential federal OZ guidance since OBBBA was enacted, and the framework fund sponsors and investors will plan the 2026-to-2027 transition around.

June 18, 2026 · Investment

Texas: $1.6B Camp Howze rail park breaks ground in a designated Opportunity Zone

Officials broke ground on the Camp Howze Industrial Rail Park, a 480-acre BNSF-certified development off Interstate 35 in Gainesville that sits within a designated Opportunity Zone and is eligible for New Markets Tax Credits and Texas Chapter 403 incentives. With one anchor tenant signed and potential for up to 2,000 jobs, officials cited roughly $1.6 billion in potential investment — a concrete example of OZ-eligible industrial development as the OZ 2.0 map takes shape.

Read more → · Source: kxii.com
June 18, 2026 · Investment

Florida: Opportunity Zone fund clears 378-unit Fort Lauderdale tower

Fort Lauderdale city commissioners approved a denser, 378-unit redesign of an 11 Andrews Avenue mixed-use tower whose development site sits in a federally designated Opportunity Zone. The site is held by Bachow Fam OZ Fund LLC, which can raise capital from investors seeking OZ tax deferral — an example of OZ capital backing downtown multifamily development in South Florida.

June 17, 2026 · State Process

West Virginia: Roane County submits two tracts for OZ 2.0 nomination

The Roane County Economic Development Authority is applying to nominate two local census tracts for OZ 2.0 designation, submitting its package — with letters of support from local partners — to the West Virginia Division of Economic Development ahead of the state's July 1, 2026 deadline. Gov. Patrick Morrisey will decide which tracts advance to Treasury for certification. The move shows rural counties positioning early for the program's enhanced 30% rural QROF step-up.

June 17, 2026 · State Process

Arizona: Mohave County pursues five new OZ 2.0 designations

Mohave County is pushing for five new Opportunity Zone designations under OZ 2.0, targeting specific areas where housing, jobs, and infrastructure momentum is already building. The strategy reflects the program's permanence under OBBBA and the new transparency rules requiring Treasury to publish housing and economic-impact data for designated tracts. Arizona has roughly 500 eligible tracts ahead of the July 1 nomination window.

June 16, 2026 · State Process

South Carolina: Greenwood submits four census tracts for OZ 2.0 consideration

The City of Greenwood submitted four census tracts as priority areas for OZ 2.0 designation, City Manager Julie Wilkie told City Council, noting the state's submission deadline fell on June 16. South Carolina is among the states moving ahead of the federal July 1–September 29 governor nomination window. Of South Carolina's roughly 445 eligible tracts, the state can nominate about a quarter.

June 1, 2026 · Industry Analysis

OZ 2.0 fund pipeline grows as January 2027 effective date approaches

Industry analysts report a meaningful uptick in sponsor activity preparing Qualified Rural Opportunity Fund (QROF) vehicles for the January 1, 2027 effective date. With the 30% rural step-up roughly tripling the year-5 tax benefit vs standard QOFs, several established sponsors are launching dedicated rural-only funds for the first vintage under OZ 2.0.

May 22, 2026 · State Process

Oregon OZ 2.0 nomination application window closes

Business Oregon's application window for cities, counties, ports, tribal governments, and economic development organizations closed today. Of 229 eligible tracts, Oregon will nominate up to 58 — final selections expected June 2026.

May 13, 2026 · Industry Analysis

Capital gains realized in Q1 2026 face dual-track investment decision

Investors who realized capital gains in Q1 2026 face a 180-day rollover window that puts their decision squarely on the OZ 1.0 / OZ 2.0 boundary. Gains realized in late Q1 will rollover into mid-2026 — under OZ 1.0 rules (sunset Dec 31, 2026). Gains realized in mid-Q2 2026 onward can be timed to rollover into early 2027 under OZ 2.0 (rolling 5-year deferral + 30% rural step-up).

May 6, 2026 · Federal Guidance

IRS releases preliminary rural tract criteria in Notice 2025-50

IRS Notice 2025-50 provides the rural designation criteria for Qualified Rural Opportunity Funds (QROFs) under OZ 2.0. Tracts qualifying as rural are eligible for the 30% basis step-up at year 5 — three times the 10% step-up available to standard QOFs. The criteria are based on USDA rural definitions and exclude tracts within Metropolitan Statistical Areas above a population threshold.

July 4, 2025 · Legislation

One Big Beautiful Bill Act signed into law

OBBBA (Public Law 119-21) makes Opportunity Zones permanent. Rolling 5-year deferral replaces fixed 2026 deadline for investments after January 1, 2027. New 30% basis step-up for qualified rural QOFs. Rolling 30-year cap on 10-year exclusion with automatic step-up.