Opportunity Zones 2.0

In July 2025, Opportunity Zones (OZ), economically distressed communities, defined by individual census tract, nominated by the governor, and certified by the U.S. Secretary of the Treasury, were made permanent, meaning they will have rolling investment periods instead of a sunset date. New investments in Opportunity Zones may be eligible for capital gain tax deferral or exclusion. There are currently 8,764 Opportunity Zones in the United States and the opportunity to designate more zones is right around the corner. Governors will nominate zones in July 2026, and they will take effect in 2027.

Another important change to OZs 2.0 is the inclusion of rural zones and enhanced tax benefits for rural investment. Rural areas are defined as a city or town with less than 50,000 inhabitants and not part of the urbanized areas contiguous to these cities or towns.

Watch CALED’s January 7, 2026 Webinar about Opportunity Zones 2.0.

Now is the time to reach out to your elected representatives to promote areas that you think should be in an Opportunity Zone.

Below are some practical next steps for you and your community:

• Geospatial mapping of qualifying census tracts for Opportunity Zones
• Identify potential opportunities for investment
• Work with local leaders to understand community-level needs
• Align needs to opportunities and leverage available financing tools

See where potential zones may be in your community (Novogradac)

Economic Innovation Group: Opportunity Zones 2.0: A Guide for Governors and Mayors