{"url":"https://www.bizjournals.com/buffalo/news/2026/01/12/opportunity-zone-program-changes.html","title":"Opportunity Zones program faces major changes in 2026","domain":"bizjournals.com","imageUrl":"https://images.pexels.com/photos/30607308/pexels-photo-30607308.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"urban redevelopment","category":"Other","language":"en","slug":"2d0ff8a3","id":"2d0ff8a3-1aae-4b1f-9feb-c0a4a3341029","description":"Federal Opportunity Zones program ends original version at close of 2026 with big deadlines ahead under One Big Beautiful Bill Act.","summary":"## TL;DR\n- Federal Opportunity Zones program ends original version at close of 2026 with big deadlines ahead under One Big Beautiful Bill Act.\n- Changes include permanent status, rolling five-year gain deferrals after Dec. 31, 2026, and stricter low-income rules narrowing eligible areas.\n- Investors face gain recognition by end of 2026 while new zones start Jan. 1, 2027, shifting focus to rural incentives and redesignations.\n\n## The story at a glance\nThe article outlines major changes to the federal Opportunity Zones program driven by the One Big Beautiful Bill Act, which makes it permanent but alters rules and deadlines. Reporter Andy Medici highlights looming 2026 milestones for Buffalo-area developers and investors. It is reported now as a 2026 planning guide amid the transition from the original temporary program.\n\n## Key points\n- Original program sunsets December 31, 2026; all deferred capital gains must be recognized then for pre-2027 investments.\n- Post-December 31, 2026 investments get rolling five-year deferral on gains, with 10% basis step-up after five years.\n- Stricter low-income community definition eliminates contiguous tract designations, reducing number of eligible zones.\n- New zones designated by governors starting July 1, 2026, effective January 1, 2027, for 10-year cycles.\n- Rural Opportunity Zones offer 30% basis step-up for funds holding 90% in rural areas, up from standard 10%.\n- Overlap period allows old zones until end of 2028 in some cases, per secondary reporting.\n\n## Details and context\nThe Opportunity Zones program, from the 2017 Tax Cuts and Jobs Act, lets investors defer capital gains taxes by putting money into qualified funds for low-income areas. The One Big Beautiful Bill Act, signed July 4, 2025, averts full expiration but tightens rules to better target need.[[1]](https://www.bizjournals.com/buffalo/news/2026/01/12/opportunity-zone-program-changes.html)[[2]](https://www.bizjournals.com/buffalo/news/2026/01/30/opportunity-more-next-opportunity-zones.html)\n\nFor 2026, it acts as a bridge year: last chance for original benefits, but short deferral for new investments made then. States nominate up to 25% of eligible tracts, with Treasury approval by year-end.[[3]](https://www.adamsandreese.com/insights/key-changes-to-the-opportunity-zone-program-in-the-one-big-beautiful-bill-act)\n\nBuffalo projects may see fewer zones qualify, pushing developers to check tract status and plan around gain recognition deadline.\n\n## Key quotes\nNone available from visible article content or matching sources.\n\n## Why it matters\nThese shifts reshape tax incentives for economic development in distressed areas, balancing permanence with tighter targeting. Investors and Buffalo developers must recognize deferred gains by end of 2026 and eye new rural bonuses or zone losses for planning. Watch state designations after July 1, 2026, and Treasury approvals, as eligible tracts could change significantly.","hashtags":["#opportunity","#zones","#tax","#incentives","#economic","#development"],"sources":[{"url":"https://www.bizjournals.com/buffalo/news/2026/01/12/opportunity-zone-program-changes.html","title":"Original article"},{"url":"https://www.bizjournals.com/buffalo/news/2026/01/30/opportunity-more-next-opportunity-zones.html","title":""},{"url":"https://www.adamsandreese.com/insights/key-changes-to-the-opportunity-zone-program-in-the-one-big-beautiful-bill-act","title":""}],"viewCount":2,"publishedAt":"2026-04-06T18:52:11.205Z"}