Opportunity Zones Made Permanent in the USA

The passage of the One Big Beautiful Bill renewed the Opportunity Zones (OZ) incentive and ensured its impact will continue for the foreseeable future.

After years of speculation, Opportunity Zones have finally been renewed. With the passage and signing of H.R. 1, known as the One Big Beautiful Bill Act, the OZ incentive has not only been extended beyond its initial 2026 sunset date, but has been made a permanent part of the tax code.

Despite the success of the program in bringing investment to underserved communities, industry stakeholders had been unsure if it would be renewed. Now Opportunity Zones can continue driving investment across the country, albeit with some changes to how the program operates.

Among the changes are a return of the step up in basis benefit that had previously expired, an elevated step up in basis for rural OZ investments, expanded reporting requirements, and procedures for redrawing the OZ map periodically to ensure investment reaches the communities that need it most.

The current version of the program still expires on 12/31/26, which means investors will have to wait until 2027 to reap the new program’s benefits. Thankfully, that gives us plenty of time to dissect the new rules and educate OZ fund managers and investors on upcoming compliance issues. Stay tuned for more information from JTC as we learn more about the new program, and as long as OZ continues, we will be ready to help the industry thrive.

Get in touch with Edward Smith to learn more about JTC’s solutions for Opportunity Funds.