Overview

The Opportunity Zone (OZ) program, established by Congress in 2017 and administered by the U.S. Department of Treasury, has been revamped and made permanent through federal legislation enacted in 2025. The renewed Opportunity Zone 2.0 program takes effect January 1, 2027. The program encourages investment in Opportunity Zones by offering federal capital gains tax incentives for those who invest eligible capital through Qualified Opportunity Funds.

Opportunity Zone 2.0 Program

Under the Opportunity Zone 2.0 program, state governors will be able to nominate 25% of their respective state’s eligible census tracts every ten years for U.S. Treasury certification as Opportunity Zones. Indiana’s census tract nominations are due on September 28, 2026. Once certified, these Opportunity Zones will be in place for ten years, beginning on January 1, 2027.

The Opportunity Zone 2.0 program will continue to pursue the program’s original goal of encouraging long-term private investment in low-income communities by offering federal tax incentives to investors. The updated framework emphasizes support for rural communities, tightens the income threshold for eligible tracts, and adds accountability and reporting requirements. Strengthened incentives, including enhanced tax benefits and modified program requirements, are designed to increase the flow of private capital into underserved areas.