Opportunity Zones (OZs)

An Opportunity Zone is a low-income, economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. The tax benefits can include the deferral of tax on invested capital and the exclusion of capital gains tax on fund investments held for ten years or more.


Congress should extend expired and expiring OZ deadlines so these innovative, proactive policy incentives can continue driving capital investment and economic opportunity to the country’s most distressed communities.

OZs help stimulate job creation and economic growth in low-income communities by channeling investment where it is most needed and prioritized by states and local communities. The Roundtable continues to advocate for improvements to the OZ tax incentives, such as enhanced information reporting, data collection, and transparency, as well as lowering the substantial improvement threshold to cover a broad range of real estate rehabilitation and redevelopment projects.


Congress created Opportunity Zones in the 2017 Tax Cuts and Jobs Act (TCJA) to encourage long-term capital investment in economically struggling, low-income communities. Opportunity Funds must invest in tangible business property located in a qualifying zone, including real estate. Tax benefits are tied to the investment holding period. The capital gain on an Opportunity Fund investment is excluded from tax altogether if the asset is held for 10 years or more.

Unfortunately, delays in the rulemaking process and the onset of the COVID-19 pandemic short-circuited the full impact of OZs. The final OZ regulations were issued just four months before COVID-19 caused a national economic lockdown that severely affected taxpayers’ ability to launch new real estate projects and other businesses.

Explore an interactive map of all Opportunity Zones from the Economic Innovation Group and FAQs from the IRS.

For more information and recent updates, reference our resources below.


Capital Gains
Like-Kind Exchanges (LKEs)
Partnerships & Pass-Through Taxation
Carried Interest
Step-Up in Basis
Opportunity Zones (OZs)
Unrealized Gains ("Billionaire Tax")