Opportunity Zones 2.0: What CPAs Need to Know | HelloBooks Opportunity Zones are permanent, new zones take effect January 1, 2027, and rural zones get a lower improvement threshold. What clients should ask.
OBBBA made the qualified opportunity zone incentive permanent and set up new rounds of zone designations every ten years. The first new round takes effect on January 1, 2027, and rural zones get special treatment.
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New zones take effect
January 1, 2027
Applies: New designations from 2027From IRS.gov · checked October 10, 2026
The incentive is permanent, with new rounds of designations following every 10 years. States nominated census tracts from July 1, 2026, and the first round of new designations takes effect January 1, 2027. Rev. Proc. 2026-14 lists 25,332 eligible low-income communities, 8,334 of them entirely rural.
For property in a zone made up entirely of a rural area, the substantial improvement threshold drops from 100% to 50% of basis. The IRS defines a rural area as anywhere other than a city or town with more than 50,000 people and the urbanized area next to one.
The plain-English summary for business owners
By client type · real estate investors
By client type · farms and ranches
Estates and gifts · 2026
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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