When Do Opportunity Zones Expire? OZ 2.0 Starts Jan. 1, 2027

Treasury and the IRS published the Opportunity Zone 2.0 final list on Nov. 5, 2026, designating all 6,576 nominated census tracts as Qualified Opportunity Zones effective Jan. 1, 2027. For investors holding capital gains, that date is the more important clock: it is when the new map starts, and it sits beside a hard Dec. 31, 2026 cutover for gains that stay on the original Opportunity Zone rules. The two maps will overlap for years — they are not interchangeable for diligence.

As of Nov. 5, 2026: 6,576 designated tracts · 2,594 rural · effective Jan. 1, 2027 through Dec. 31, 2036 · OZ 1.0 mostly through Dec. 31, 2028 (Puerto Rico Dec. 31, 2027) · gains invested through Dec. 31, 2026 stay on OZ 1.0 rules · source: Treasury sb0682; IRS Notice 2026-40

The national final-list story covers how Treasury arrived at 6,576 tracts. This piece is the investor timeline: what the federal notices say about when the new zones start, when the 2018 zones end, and what changes for gains invested after Dec. 31, 2026.

The dates Treasury and the IRS locked in. Treasury press release sb0682 states that all 6,576 nominated eligible tracts “have been designated as QOZs effective January 1, 2027,” and that the designations run for ten years. IRS Notice 2026-40 §3.01(2) puts the same period in statutory terms: for every low-income community designated as a QOZ during 2026, the designation period begins Jan. 1, 2027, and ends Dec. 31, 2036.

That is the OZ 2.0 map. The OZ 1.0 map is still live. Notice 2026-40 §2.04(c) is the wind-down cite for when do opportunity zones expire under the 2018 round:

Most 2018 QOZs: designation period ends Dec. 31, 2028.

Puerto Rico (deemed designations under the 2018 rules): designation period ends Dec. 31, 2027.

Those end dates are designation-period facts from the IRS notice — not a claim about fund exits or property sales. A tract can sit on both maps during the overlap; which map matters depends on when the gain is invested and which QOZ the business property must sit in.

What changes for gains after December 31, 2026. Notice 2026-40 separates the investor rules by investment date:

Gains invested in a QOF on or before Dec. 31, 2026 stay on the prior (OZ 1.0) timing rules, under which deferred gain is generally included by the taxable year that includes Dec. 31, 2026, unless an earlier inclusion event occurs (Notice 2026-40 §4.01).

Amounts invested in QOFs after Dec. 31, 2026 follow the amended statute: deferred gain is generally included at the earliest of a sale or exchange, another inclusion event, or five years after the investment. A five-year hold increases basis by 10 percent of the deferred gain — or 30 percent for an investment in a qualified rural opportunity fund (Notice 2026-40 §4.02; statutory definitions apply).

This is general reporting from primary sources, not tax, legal or investment advice. Confirm holding periods and rural-fund tests with counsel. See our guide to Opportunity Zone tax benefits for plain-language deferral and step-up rules.

Investor countdown and checklist. Use the federal dates as a working checklist — not a personalized tax plan:

Confirm the tract is on the designated list. Match GEOIDs to the CDFI Fund designated QOZ spreadsheet. Use the map for address lookup; CDFI remains authoritative for the 6,576 designated total.

Separate OZ 1.0 work from OZ 2.0 work. Deals on the 2018 map need a Dec. 31, 2028 (Puerto Rico Dec. 31, 2027) wind-down plan under Notice 2026-40 — Jan. 1, 2027 does not end those zones.

Watch the Dec. 31, 2026 investment cutover. Gains meant to stay on OZ 1.0 timing must be invested in a QOF by that date; later investments follow the five-year inclusion and 10%/30% step-up rules.

Run the tools against your dates. Use the tools hub, calculator, live January 1, 2027 deadline planner, and 180-day deadline calculator when the investment window is tight.

Two maps, one diligence question. From Jan. 1, 2027 through Dec. 31, 2028 (and through Dec. 31, 2027 in Puerto Rico), sponsors will see an overlap: OZ 2.0 designations already in effect, OZ 1.0 designations still in effect for most of the 2018 list. Diligence should name which designation period a deal relies on and which notice governs the gain — not a claim that “the zone expired in 2026.” Dec. 31, 2026 is the investment-rule cutover for OZ 1.0 timing; it is not the 2018 designation end date under Notice 2026-40.

Opportunity Zone Invest will keep the state tracker and OZ 2.0 final-list page aligned to the CDFI designated file as state matches clear.