The One Big Beautiful Bill Act created a permanent process for states, territories, and the District of Columbia to designate new Qualified Opportunity Zones (OZs) every 10 years. On November 5, 2026, the U.S. Department of Treasury and the Internal Revenue Service announced these new Ozs, often referred to as OZ 2.0.
On April 6, 2026, Treasury and the IRS released a list of 25,332 eligible census tracts, including 8,334 eligible rural census tracts for nomination. The November 5 announcement listed 6,576 eligible census tracts as approved in the final OZ 2.0 designations, including 2,594 eligible census tracts in rural areas.
Action Items and Important Dates
OZ 2.0 designations take effect on January 1, 2027. New Qualified Opportunity Funds (QOF 2.0) can begin accepting funds once the designations are in effect. As a reminder, investments in QOF 2.0 provide the following tax benefits for investors provided the QOF remains in compliance with the QOF rules throughout the investment:
- Gain deferral for up to five years as long as no inclusion event prior to five years.
- A potential step-up in basis of 10% in non-rural OZ areas and 30% in rural OZ areas.
- Tax-free sale on the subsequent appreciation of the investment after holding the QOF for more than 10 years.
How Forvis Mazars Can Help
Our professionals at Forvis Mazars can help you evaluate OZ 2.0 investment opportunities. Contact Us to learn more. For additional information on OZs, including OZ 2.0 and transition rules for OZ 1.0 tracts that did not make it into the OZ 2.0 designation, you can read our following FORsights™:
Forvis Mazars Private Client services may include investment advisory services provided by Forvis Mazars Wealth Advisors, LLC, an SEC-registered investment adviser, and/or accounting, tax, and related solutions provided by Forvis Mazars, LLP. The information contained herein should not be considered investment advice to you, nor an offer to buy or sell any securities or financial instruments. The services, or investment strategies mentioned herein, may not be available to, or suitable, for you. Consult a financial advisor or tax professional before implementing any investment, tax or other strategy mentioned herein. The information herein is believed to be accurate as of the time it is presented and it may become inaccurate or outdated with the passage of time. Past performance does not guarantee future performance. All investments may lose money.