Get OZ Ready
Opportunity Zones are entering a new era. Created to encourage private investment in economically distressed communities, Opportunity Zones use federal tax incentives to help attract capital to designated census tracts across the United States.
Originally established by the Tax Cuts and Jobs Act of 2017, the Opportunity Zones program was made permanent and updated in 2025. The next generation of Opportunity Zones — OZ 2.0 — begins in 2027, with new zones designated every 10 years.
CDFA's Opportunity Zones Resource Hub brings together the latest news, resources, education, and connections to help development finance professionals understand what's changing, identify opportunities, and get OZ Ready.
OZ 2.0 is coming. Now is the time to prepare.
New Opportunity Zone designations take effect January 1, 2027, making 2026 a critical year for communities to turn eligible tracts into investment-ready opportunities.
States and territories are now moving through the OZ 2.0 nomination and designation process. For communities, the work shouldn't stop at identifying eligible census tracts. Effective Opportunity Zone strategies connect designation decisions to local economic development priorities, viable projects and businesses, infrastructure needs, and opportunities to attract private capital.
Designation is only the beginning.
Successful Opportunity Zones need projects, partnerships, financing strategies, and local capacity ready to turn designation into investment.
- Follow the designation process. Monitor state-level developments, tract nominations, federal guidance, and emerging designation trends.
- Select tracts strategically. Evaluate eligible census tracts alongside local economic development priorities, existing projects, infrastructure needs, and investment opportunities.
- Prepare projects for investment. Identify viable projects, develop strong project prospectuses, understand financing needs, and be ready to communicate opportunities to Qualified Opportunity Funds and investors.
- Build the capital stack. Pair Opportunity Zone equity with bonds, Tax Increment Financing (TIF), tax credits, revolving loan funds, and other public and private financing tools to improve project feasibility and investment readiness.
- Create opportunities for local businesses. Look beyond real estate development to strategies that help Qualified Opportunity Zone Businesses access capital, grow, and create jobs.
- Stay current on the rules. Follow evolving compliance, monitoring, reporting, and implementation requirements as the OZ 2.0 framework develops.
- Learn from the field. Connect with peers to identify effective strategies, understand emerging approaches, and avoid common challenges.
2017–2019: Creation & Implementation
December 22, 2017
Tax Cuts and Jobs Act enacted
The Tax Cuts and Jobs Act (TCJA) establishes the Opportunity Zone program through the new Internal Revenue Code §§1400Z-1 and 1400Z-2. The program is designed to encourage investment in designated low-income communities through tax incentives.
February 8, 2018
Initial implementation guidance
Treasury and IRS issue guidance establishing the process for states, D.C., and U.S. territories to nominate census tracts.
March 21, 2018
Original state nomination deadline
States, D.C., and U.S. territories were required to submit their Opportunity Zone nominations by March 21, 2018, with the ability to request a single 30-day extension.
April 9, 2018
First Opportunity Zones designated
Treasury and IRS designate the first Opportunity Zones across 18 states.
June 14, 2018
Final 2018 designations
The final round establishes Opportunity Zones in all 50 states, D.C., and five U.S. territories. Ultimately, 8,761 communities were designated.
October 19, 2018
First proposed regulations
Treasury and IRS issue proposed regulations explaining how investors, Qualified Opportunity Funds (QOFs), and Qualified Opportunity Zone Businesses can participate in the program.
December 31, 2018
Important five-year investment clock begins
For early investors, the timing of QOF investments becomes important for determining future basis increases and tax benefits.
May 1, 2019
Second round of proposed regulations
Treasury and IRS issue additional proposed regulations addressing significant technical questions surrounding QOFs and Opportunity Zone investments.
December 19, 2019
Final Opportunity Zone regulations
Treasury and IRS issue TD 9889, the final regulations governing major aspects of the OZ program. The regulations clarify rules for eligible gains, QOFs, QOZ businesses, qualified property, the 90% investment standard, and the 10-year investment period.
2020–2025: Investment & Evolution
March–July 2020
COVID-related relief
Treasury and IRS issue temporary relief affecting certain Opportunity Zone investment and compliance deadlines during the COVID-19 pandemic, including extensions of certain 180-day investment periods.
April 2021
2020 Census does not redraw existing OZs
IRS Announcement 2021-10 confirms that the boundaries of existing Opportunity Zones are not changed by the 2020 Decennial Census. The original OZ boundaries remain tied to the census tracts used when the zones were designated.
2022–2024
Continued investment under original OZ framework
The program moves from initial implementation toward longer-term investment, development, and compliance. Investors continue using QOF structures to defer eligible gains and pursue the program's longer-term tax benefits.
Important ongoing rule:
A QOF generally must maintain at least 90% of its assets in Qualified Opportunity Zone property, subject to the applicable testing rules.
Important 10-year rule:
Investors holding qualifying QOF investments for at least 10 years may generally elect a basis adjustment to fair market value upon sale, potentially eliminating federal tax on post-investment appreciation.
July 4, 2025
One Big Beautiful Bill Act enacted
The One Big Beautiful Bill Act (OBBBA) significantly changes Opportunity Zones, including:
- Making the Opportunity Zone program permanent
- Establishing new rounds of Opportunity Zone designations every 10 years
- Creating a new 2027 designation cycle
- Establishing new eligibility rules for future zones
- Creating enhanced provisions for certain rural Opportunity Zones
- Changing certain investment and tax rules beginning after 2026
- July 4, 2025 — One Big Beautiful Bill Act enacted
July 4, 2025
Rural OZ provision takes effect
For property located in a QOZ that is entirely rural, the substantial improvement threshold is reduced from 100% to 50% of the property's adjusted basis.
2026–2036: OZ 2.0 / Permanent Program
April 6, 2026
Treasury/IRS issue Rev. Proc. 2026-14
- Treasury and IRS release the formal process for states, D.C., and U.S. territories to nominate census tracts for the 2027 Opportunity Zone cycle.
- The guidance identifies 25,332 eligible low-income census tracts, including 8,334 tracts that are entirely rural.
July 1, 2026 — 2027
OZ nomination window opens
Beginning July 1, 2026, states begin their 90-day period for nominating eligible census tracts for the next generation of Opportunity Zones.
July 1–September 28, 2026
Initial 90-day nomination period
States can nominate eligible census tracts during this determination period.
October 28, 2026
Nomination modification deadline
Under Rev. Proc. 2026-14, requests to modify a state nomination after October 28, 2026 will be denied.
Late 2026
Treasury certification/designation
- Following the nomination process, Treasury is expected to certify and designate the new QOZs.
- The IRS/Treasury have indicated that additional information identifying the designated zones is expected before January 1, 2027.
December 31, 2026
Major original-program investment deadline
For the original OZ program, December 31, 2026 is a critical tax deadline.
Eligible gains recognized on or before December 31, 2026 can generally be invested in a QOF within the applicable 180-day period under the existing rules. The original deferral period ends with the earlier of an inclusion event or December 31, 2026.
January 1, 2027
OZ 2.0 launches
New Opportunity Zone designations take effect
- The first new generation of Opportunity Zones under the OBBBA begins.
- The new 2027 QOZ designation period runs January 1, 2027 – December 31, 2036
- This begins the new 10-year designation cycle.
New OZ investment framework begins
- The OBBBA's new Opportunity Zone rules begin applying to investments made under the new framework, including changes affecting rural investments and future QOF/QOZ business activity.
December 31, 2036
First OZ 2.0 cycle ends
The first new generation of Opportunity Zone designations under the permanent program reaches the end of its 10-year designation period.
January 1, 2037
Next OZ cycle begins
The next 10-year Opportunity Zone designation cycle begins, continuing the permanent, decennial structure established by the OBBBA.
CDFA can help you get OZ Ready.
From understanding what's changing to building an investment strategy, CDFA connects communities and practitioners with the knowledge, tools, and people they need to make the most of OZ 2.0.
The Opportunity Zones Resource Hub is continually updated as OZ 2.0 unfolds, bringing together timely news, resources, educational opportunities, and access to a national network of development finance professionals.
Learn how to put OZ 2.0 to work.
The CDFA Opportunity Zones Learning Series provides guidance from national experts on tract selection, Opportunity Zone Funds, project preparation, TIF, bonds, tax credits, revolving loan funds, compliance, and strategies for attracting private investment.
Explore the CDFA Opportunity Zones Learning Series
Connect with the people doing the work.
Through the CDFA Opportunity Zones Networking Circle, CDFA members can engage directly with professionals working on Opportunity Zone projects and investments. Peer-focused conversations provide a place to share experiences, discuss challenges, explore emerging strategies, and learn what's working in communities across the country.
Join the CDFA Opportunity Zones Networking Circle
Build a stronger OZ financing strategy.
Opportunity Zones Finance Week equips communities and practitioners with the knowledge and strategies to attract investment and maximize OZ 2.0, with three courses covering key legislative updates, rural Opportunity Zones, enhanced incentives, and approaches to financing and investment.
Explore Opportunity Zones Finance Week
Turn designation into investment — and investment into impact.
OZ 2.0 creates a new opportunity to align private capital with local economic development priorities, but realizing that opportunity requires preparation.
For development finance agencies, developers, investors, financial institutions, CDFIs, and other practitioners, getting OZ Ready means more than knowing where the new Opportunity Zones are. It means having projects, partnerships, financing strategies, and local capacity in place to attract capital and put it to work.
CDFA is helping communities prepare through timely information, practical education, development finance expertise, and a national network of professionals working to turn Opportunity Zone investment into meaningful economic and community impact.
OZ 2.0 starts in 2027. Get OZ Ready now.