QOZ 2.0 Is Coming. Are You Ready?

Overview

Since 2017, the opportunity zone program has offered investors an unusual combination of tax deferral and tax elimination, but always with an expiration date attached. For investments made after December 31, 2026, the One Big Beautiful Bill Act (OBBBA) removes that expiration date, making the qualified opportunity zone (QOZ) program permanent and adding new incentives for long-term investment. The revised program, commonly called QOZ 2.0, generally applies to investments made on or after January 1, 2027. For investors with 2026 gains, it is possible to get the benefit of this new program.

In depth

Five year tax deferral for every investment

Under QOZ 2.0, an investor generally may defer paying US federal income tax on eligible gain invested in a qualified opportunity fund (QOF) until five years after the investment, unless a sale or other inclusion event occurs first. An investment held for at least five years also receives a basis increase equal to 10% of the deferred