Opportunity Zones (OZ) 2.0

The Opportunity Zones 2.0 program is underway. With the OZ program now permanent and a new round of designations to come, the next map of OZs is being drawn, and California cities, counties, and other eligible entities  have a fresh window to put it to work. A new round of eligible census tracts is now being nominated, taking effect January 1, 2027, for a full 10 years, with the map refreshed each decade thereafter.

Key Dates:

  • July 25, 2026: Local recommendation forms due to GO-Biz.
  • September 29, 2026: Close of the California nomination process.
  • January 1, 2027: New OZ 2.0 map takes effect and locks in for 10 years.

Kosmont Companies is at the forefront of helping communities and private investors use the OZ program to bring investment to qualified OZ communities. The 2025 One Big Beautiful Bill Act (OBBBA) made the program permanent, tightened eligibility, and added enhanced incentives for rural investment. Kosmont understands the challenges facing cities, property owners, and investors navigating the Opportunity Zone marketplace, and the importance of pairing OZ investments with other funding sources (e.g., EIFDs, TIF, Federal Tax Credits).

Under OZ 2.0, Opportunity Zone investments allow investors to:

  • Defer tax on reinvested capital gains under a rolling five-year deferral.
  • Receive a step-up in basis at five years (10% standard, 30% for qualifying rural investments).
  • Pay as little as zero tax on appreciation from a qualified fund held for at least 10 years.
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If a community is prepared, it can use the program to attract private investment and catalyze growth in targeted areas. Paired with other incentives and tax-increment strategies, OZ investments can enhance project viability, jump-start development, and stimulate housing.

Investor guidelines must be met, or tax advantages will not be realized, so speed to market and minimizing entitlement/CEQA risk remain critical.

The Kosmont Team is uniquely suited to assist with Opportunity Zone strategy:

  • Local Knowledge and Broad Network: decades serving cities and counties on economic incentives, real estate and land use, and public/private finance
  • Project and Political Due Diligence: matching market viability to community support
  • Tax Increment Expertise: a leading firm on EIFDs, CRIAs, CRDs, and related districts that can be overlaid onto Opportunity Zones
  • Eligibility and Nomination Support: identifying which tracts qualify and building competitive recommendations to the State
Larry Kosmont and Gavin Newsome cropped

“We want to pair EIFDs with Opportunity Zones.
That is the big idea!”
–Gov. Newsom, 2019-2020 Budget Address

Kosmont is ready to support public & private sector clients with Opportunity Zones and TIFs:

  • Identifying a jurisdiction’s best eligible tracts and preparing GO-Biz recommendations
  • Advising strategy and pairing OZ with EIFDs and other TIF tools
  • Updating economic development plans, permitting, and zoning
  • Developing prospectus materials and opportunity marketing
  • Investment matchmaking, negotiation, and transaction support