San Diego Opportunity Zones

San Diego falls under California's OZ 2.0 selection process. The state's lead agency — GO-Biz (Governor's Office of Business and Economic Development) — will recommend tracts for nomination by September 29, 2026. Residents, developers, and community organizations in San Diego can typically submit input through the state's community-input window.

Under the One Big Beautiful Bill Act, OZ 2.0 tightens the low-income community criteria to 70 percent of area median income (down from 80 percent under OZ 1.0), eliminates the contiguous-tract option, and requires at least 33 percent of nominated tracts to be entirely rural. That changes which San Diego neighborhoods qualify.

Final designations take effect January 1, 2027. Investments into Qualified Opportunity Funds targeting San Diego tracts on or after that date receive OZ 2.0 benefits: rolling 5-year deferral, 15 percent basis step-up, and 100 percent exclusion of QOF appreciation after a 10-year hold.