Notice of Transition: Opportunity Zone 1.0 to Opportunity Zone 2.0

Effective January 1, 2027, the Opportunity Zone (OZ) program shifts from its original framework (OZ 1.0) to an expanded, permanent structure under OZ 2.0. The website is currently being updated please check back by December 14th, 2026.

Effective January 1, 2027, the Opportunity Zone (OZ) program shifts from its original framework (OZ 1.0) to an expanded, permanent structure under OZ 2.0.

1. Key Timeline and Map Overlap

• January 1, 2027: OZ 2.0 officially begins with newly designated, data-updated census tract maps.

• 2027 through 2028: A mandatory two-year transition window opens where OZ 1.0 and OZ 2.0 maps coexist.

• December 31, 2028: Original 2018 OZ 1.0 tracts officially sunset and expire.

2. Treatment of Existing Investments

• Grandfathered Status: Legacy capital deployed in OZ 1.0 tracts remains protected and eligible for the 10-year gain exclusion.

• December 31, 2026 Milestone: The deferred tax on original OZ 1.0 capital gains is recognized on this date and cannot be deferred again using OZ 2.0.

• New Deployment: After December 31, 2028, new investments must sit within a newly designated OZ 2.0 tract to qualify for tax benefits.

For further information please visit one of the sites below:

California Opportunity Zone 2.0 program webpage: https://business.ca.gov/resources/infrastructure-development/opportunity-zones-in-california/

US Housing and Urban Development:

https://www.hud.gov/opportunity-zones/updates

Opportunity Zones.com:

https://opportunityzones.com/2025/07/ozp-353-oz2-explained/om/2025/07/ozp-353-oz2-explained/