What is an Opportunity Zone?
An Opportunity Zone is a census tract designated as distressed where investors can place capital gains in exchange for substantial tax benefits: deferral, 10-15% reduction if held 5-7 years, and full exemption on gains from the OZ investment itself if held 10+ years. The tool was created by the Tax Cuts and Jobs Act of 2017.
What changes with OZ 2.0?
The One Big Beautiful Bill Act (OBBBA) signed in 2025 makes Opportunity Zones permanent and launches a full redesignation in July 2026. The income threshold drops from 80% to 70% of median family income, reducing eligible tracts by about 20%. Rural OZ investments qualify for up to 30% capital gains reduction, up from 10%.
How to prepare for OZ 2.0?
Cities must identify census tracts likely to be redesignated, document revitalization potential and build attractive investment cases. COLHYBRI provides an objective commercial vitality diagnosis with per-shop Score Maps, an ideal metric to justify OZ 2.0 investment.