The Opportunity Zone program uses capital gains tax advantages to attract long-term, value-add investment in under-invested communities. In 2018, 8,764 low-income census tracts were designated as Opportunity Zones. Following passage of the One Big Beautiful Bill Act in 2025, the program has been made permanent and expanded under what is broadly referred to as "OZ 2.0," with new zone maps and investor benefits taking effect January 1, 2027.

Investors who realize a capital gain and reinvest that gain into a Qualified Opportunity Fund (QOF) may be eligible for the following benefits under OZ 2.0:

• A rolling 5-year deferral on the original capital gain, with no fixed expiration deadline

• A 10% reduction of the original deferred gain after five years in the investment

• No federal capital gains tax on any appreciation earned inside the OZ investment after a 10-year hold

• Potential 100% bonus depreciation in Year 1 on eligible assets, with no depreciation recapture on exit

Note: OZ 1.0 investments made before December 31, 2026 still defer the original gain through the end of 2026 under the prior rules. The new rolling deferral applies to investments made under OZ 2.0.

Any person who has realized a capital gain within the last 180 days may be eligible to invest that gain into a Qualified Opportunity Fund and access OZ tax benefits. The gain can come from any qualifying source: a business sale, stock liquidation, real estate transaction, or other capital asset,  as long as it is reinvested within the 180-day window.

Thousands of previously under-invested communities that qualify under census AMI thresholds across all 50 states, the District of Columbia, and five U.S. territories are designated as Qualified Opportunity Zones. Beginning January 1, 2027, new zone maps take effect. Some tracts will be added and some removed. States are expected to release finalized maps by mid-2026. An interactive map of current Opportunity Zones can be found here.

Opportunity Zone investments can be made in real estate or operating businesses located within a designated zone but must be made through a Qualified Opportunity Fund (QOF). For real estate investments, where Blueprint focuses, projects must satisfy the "substantial improvement test" requiring that for every $1 of existing building value at acquisition, the developer invests an additional $1 in renovation or development. New ground-up construction inherently satisfies this test. If the investment is held in the QOF for at least 10 years, capital gains resulting from the qualifying investment may be permanently excluded from federal tax upon exit.

Funds affiliated with Blueprint Local have invested equity in over 20 Opportunity Zone projects across the Southeast, Texas, and Mid-Atlantic, focusing primarily on multifamily housing in high-growth markets. Examples include The Current, a mixed-use development in downtown Richmond combining mixed-income housing, office space, and community retail; The Pass, a transit-oriented development on a former industrial yard in north Charlotte; and a range of workforce multifamily projects in growing cities including Austin, Dallas, Houston, Atlanta, and Raleigh.

Independent evaluations from the U.S. Government Accountability Office, Economic Innovation Group (EIG), and Novogradac have documented meaningful early outcomes:

• The OZ program has supported at least $100 billion in private investment in economically distressed communities at no upfront cost to the federal government

• The median household income in OZ communities is approximately half the national median, and the poverty rate is roughly double, confirming that the program has largely reached its intended communities

• In zip codes that include Opportunity Zones, new housing construction has roughly doubled; OZ tracts now account for nearly 23% of all new multifamily units nationally, up from 12% pre-program

• Firms indicate the OZ incentive is driving investment that would not have otherwise occurred in targeted communities

The One Big Beautiful Bill Act, passed in 2025, made Opportunity Zones a permanent feature of the U.S. tax code. The program no longer has a sunset date, which removes a key concern for long-term investors: the 10-year tax-free exit benefit now runs without a legislative deadline in the background. On top of that permanence, OZ 2.0 introduced a rolling 5-year deferral on the original deferred gain, a 10% reduction on the original deferred gain if held for 5 years, and permanent 100% bonus depreciation, benefits that improve on OZ 1.0 over life of a qualifying investment.

Investors evaluating Opportunity Zone strategies can learn more about the mechanics of OZ 2.0, example investment structures, and Blueprint’s investment criteria in our Opportunity Zones 2.0 Investor Primer available above.