As states finalize the next Opportunity Zone maps, Treasury and the IRS are seeking input on program rules while lawmakers weigh whether data centers should qualify for OZ tax benefits.

Treasury Seeks Input on OZ Rules

• In a Sept. 22 notice, Treasury and the IRS requested comments on how to implement the permanent OZ program, specifically regarding housing investment, working capital rules, operating businesses and the tax treatment of long-held investments. Comments are due Nov. 23. (Tax Notes, Sept. 22 | Bloomberg Law, Sept. 23)

• The request follows proposed regulations issued Sept. 11 on reporting requirements for Qualified Opportunity Funds (QOFs) and OZ businesses, as well as fund certification and decertification. Comments on that separate proposal are due Oct. 16. (PoliticoPro, Sept. 10)

RER Advocacy

• RER’s Opportunity Zone Working Group has urged Treasury and the IRS to adopt clear, workable rules that allow existing projects to continue through the transition to the permanent program.  The Group also recently met with Treasury and IRS staff in August to discuss guidance for projects spanning the original and permanent OZ programs.

• In July 29 comments, RER sought clearer rules for multiphase projects, property improvements, and continued investment in original OZ tracts through their statutory expiration in 2028. (Roundtable Weekly, Sept. 11 | Roundtable Weekly, July 31)

• The comments build on RER’s earlier efforts to prevent uncertainty from delaying housing and redevelopment. IRS Notice 2026-40, issued in June, incorporated several RER recommendations following the group’s March proposal for transition relief and its December 2025 letter. (Roundtable Weekly, March 6 | Letter, Dec. 19)

• The new maps and forthcoming rules will shape where and how OZ capital can support housing, redevelopment and other projects in low-income communities.

New Opportunity Zones Maps

• Governors are finalizing nominations for the next generation of OZs ahead of a Sept. 28 deadline, with a 30-day extension available upon request. Treasury will certify the new designations, which take effect Jan. 1, 2027 and remain in place for 10 years.

• The tighter eligibility rules are expected to significantly reduce the number of designated OZs. Roughly, 6,500 zones could be selected nationwide, nearly 26% fewer than the 8,764 designated under the original program. (Bisnow, Sept. 15)

• The designation process will help determine where new OZ-supported investment can occur beginning in 2027. While the original program attracted significant multifamily investment, developers are now pursuing designations for a broader range of real estate projects, including mall redevelopments and data centers. (Bisnow, Sept. 15)

Data Center OZ Legislation

• Last week, Sen. Hawley (R-MO) introduced the No Tax Breaks for Data Centers Act, which would exclude data centers from OZ tax benefits while preserving the incentive for other eligible investments. (Sen. Hawley Press Release, Sept. 17)

• The bill follows a House Democratic proposal, Reverse Big Ugly Tax Breaks for Data Centers Act, that would deny covered data centers both OZ eligibility and 100% bonus depreciation. (Politico |  Roundtable Weekly, Sept. 18)

RER will continue working with Congress, Treasury, and the IRS to secure and improve  OZ rules to ensure the incentives support economic development and job growth, new sources of local tax revenue,  and expanded housing supply.

The Real Estate Roundtable (RER) submitted comments on Aug. 19 to the U.S. Citizenship and Immigration Services (USCIS) recommending changes to proposed regulations implementing the EB-5 Reform and Integrity Act of 2022 (RIA). RER urged revisions to three provisions in USCIS’s proposal that could limit EB-5’s effectiveness as a source of capital for job-creating real estate and economic development projects.  (Letter, Aug. 19)

The Proposal

• Published July 2, Ensuring the Integrity of the EB-5 Program (Docket No. USCIS-2026-0100) is USCIS’s first proposed rule implementing the 2022 law. (Federal Register) 

• The proposed rule would change the program’s treatment of bridge financing, expand “source of funds” reviews to non-EB-5 capital, and establish a new $1.4 million investment tier for projects in “high employment areas.” (Letter, Aug. 19)

RER Recommendations

RER urged USCIS to:

• Maintain the longstanding treatment of bridge financing. Bridge financing addresses the timing mismatch between when a project requires immediate capital and when longer-term capital becomes available. RER urged USCIS not to cap, eliminate or time-limit the amount of repaid bridge financing that can support qualifying EB-5 job creation. (Letter, Aug. 19)

• Apply “source of funds” requirements only to EB-5 capital. The RIA does not support applying these requirements to every component of a project’s financing. It would be impractical for an EB-5 investor to document the ultimate source of funds supporting institutional bank loans, pension fund investments and other capital the investor neither owns nor controls. (Letter, Aug. 19)

• Congress delegated responsibilities to other agencies— not USCIS—to monitor avenues of illicit overseas finance regarding non-EB-5 capital.

• Reject the proposed $1.4 million investment tier for “high employment areas.” RER warned that the new category would place urban and suburban projects at a competitive disadvantage and could impede affordable and low-income housing development, working against the goals Congress set in the 21st Century ROAD to Housing Act enacted in July. (Letter, Aug. 19)

Why It Matters

• Real estate and infrastructure projects typically depend on multiple, interrelated sources of capital with different risk profiles, financing terms, and deployment timelines.

• Denying job-creation credit solely because temporary bridge financing preceded an EB-5 investment would elevate form over substance.

• EB-5 policy should focus on whether the capital supports a qualifying project that creates U.S. jobs, not the sequence in which each component of the project’s capital stack was deployed.

What’s Next

USCIS will review public comments before issuing a final rule. RER will continue advocating for an EB-5 framework that maintains program integrity while supporting capital formation, housing production, economic development and U.S. job creation.

The Real Estate Roundtable (RER) and a coalition of national real estate organizations urged congressional leaders to include the bipartisan Combating Organized Retail Crime Act (CORCA) in the final Fiscal Year 2027 National Defense Authorization Act (NDAA). (Letter, Sept. 17)

State of Play

• CORCA (H.R. 2853/S. 1404) would strengthen coordination among federal, state, and local law enforcement and provide additional tools to investigate and prosecute organized criminal networks operating across jurisdictions.

• The House passed H.R. 2853 on May 12 by a bipartisan vote of 348–60. Senate supporters later filed CORCA as part of a bipartisan amendment package to the FY 2027 NDAA, but the chamber has not advanced the broader defense bill. (Legis1, May 14)

• RER joined the Commercial Real Estate Development Association, ICSC, Nareit, and the National Association of REALTORS® in sending the letter to House and Senate leaders.

Why It Matters

• Organized retail crime affects more than retailers. These criminal networks threaten employees and customers, disrupt shopping centers and supply chains, contribute to store closures and higher prices, and discourage investment in communities. (Letter, Sept. 17)

• Retailers are projected to lose $49.8 billion to retail theft in 2026, with losses potentially exceeding $59 billion by 2029 without federal intervention.

• A nationwide FTI Consulting survey found that 81% of Americans believe organized retail crime contributes to higher consumer prices, while 74% support federal legislation to address it.

What’s Next

• With the House not expected to return until after the midterm elections, lawmakers will face a compressed year-end window to complete the NDAA.

RER and its coalition partners are urging congressional leaders to preserve CORCA in the final package and enact the bipartisan measure before the end of the 119th Congress.