Facebook Linkedin Twitter
CALL US AT (904) 223-0510
Let's Talk

Unlocking Opportunity Zone Benefits After the OBBBA

New rules are reshaping the landscape of Opportunity Zone investing in 2025 and beyond.

The OBBBA has turned Opportunity Zones from a short-term experiment into a long-term strategy. For investors, the changes mean fewer zones to choose from, stronger incentives for rural projects, and more reporting to ensure accountability.

At Davis Capital Management, we can help you evaluate these shifts, identify the right opportunities, and build a strategy that keeps your portfolio aligned with both your goals and the new rules.

icon About

We help you navigate evolving tax laws and investment rules with strategies that align your portfolio with your goals and values.

Before the OBBBA

Opportunity Zones were created in 2017 to channel private investment into economically distressed communities. Investors received three major tax incentives:

  • Deferral of capital gains taxes until 2026 or until the investment was sold.
  • Step-ups in basis (10% after five years, 15% after seven years) to reduce taxable gains.
  • Exclusion of gains on new OZ investments if held for at least 10 years.

 

But the program had limits: the sunset date loomed in 2026, zone eligibility criteria were broad, and uneven results drew criticism about whether capital was truly reaching the communities most in need.

After the OBBBA

The OBBBA made several sweeping reforms that reshape Opportunity Zones going forward:

  • Permanence: OZs are now a permanent part of tax policy, eliminating the sunset date.
  • Redesignation cycle: Zones will be reviewed and updated every 10 years, starting in 2026.
  • Tighter eligibility: Only tracts with lower median incomes qualify, reducing the total number of OZs.
  • Simplified incentives: A flat five-year deferral and 10% step-up replaces the old tiered system.
  • Rural focus: New Qualified Rural Opportunity Funds (QROFs) provide a 30% step-up and looser improvement rules to encourage investment in rural areas.
  • Transparency: Annual Treasury reports will track job creation, housing, and socioeconomic outcomes.

Investor Takeaway

The OBBBA has turned Opportunity Zones from a short-term experiment into a long-term strategy. For investors, the changes mean fewer zones to choose from, stronger incentives for rural projects, and more reporting to ensure accountability. With new rules and deadlines approaching in 2026 and 2027, now is the time to revisit your portfolio strategy.

You don’t have to navigate Opportunity Zone changes alone.

Whether you’re exploring new investments or adjusting your strategy under the OBBBA, we can help you build a plan tailored to your future.

Get started

Newsletter Sign Up:

Davis Capital Logo
Davis Capital Management is a fiduciary wealth management firm located in Jacksonville, Florida which is committed to customer service, governed by ethics, and driven by results. Davis Capital Management’s primary objective is to help our client’s meet their financial and retirement goals by providing discretionary account management and custom financial planning.
CFP logo
Footer Global
Footer Global
Footer Global
Footer Global
Search
CFP logo
Footer Global
Footer Global
Footer Global
Search
4788 HODGES BLVD SUITE 201 JACKSONVILLE, FL 32224 | (904) 223-0510
Davis Capital Management © 2025. All Right Reserved

Get Your Free Assessment

Fill out the form below to speak with a Certified Financial PlannerTM
Professional on our team.
Your information is secure.