Oz Current Status Update
Current Status of Opportunity Zone as of 03/2025
The current Opportunity Zone (QOZ) program is set to expire on December 31, 2028, unless Congress extends it. While there have been discussions and proposed bills to extend or modify the program, no legislation has been finalized yet. If you're working with investments that depend on QOZ benefits, consider these steps:
- Monitor Legislative Updates – Keep an eye on potential extensions or modifications. Lawmakers have proposed extending deferrals beyond 2028.
Trump’s 2025 Tax Plan is looking to take the Opportunity Zone program to the next
level with QOZ 2.0.
Treasury Secretary Bessent has spoken out about his excitement for extending and expanding the
program, seeing it as a key tool for driving economic development and job creation in
underserved communities.
While details are still emerging, QOZ 2.0 is expected to include provisions to make it easier for small
businesses to participate, potentially through a streamlined qualification process or targeted
incentives. There may also be new reporting requirements to ensure the program is delivering on its
promise of economic and social impact.
2. Maximize Benefits Now – Since capital gains tax deferrals end in 2026, investors should plan
ahead for reinvestments or divestments.
3. Strategic Exits – For projects still under development, consider structuring deals to optimize for
possible extensions or shifts in tax incentives.