What Are Opportunity Zones 2.0, and Where Are the New Zones?

Opportunity Zones 2.0 is the permanent version of the federal Opportunity Zone tax break, set up by the 2025 tax law. On November 5, 2026, Treasury and the IRS designated 6,576 census tracts as new Opportunity Zones, 2,594 of them rural, in effect from January 1, 2027 through December 31, 2036. The official list and map are on the CDFI Fund's Opportunity Zones Resources page.

10%Hold the investment five years and the taxable gain drops by 10%, or 30% in a qualified rural opportunity fund.
30%Hold the investment five years and the taxable gain drops by 10%, or 30% in a qualified rural opportunity fund.
70%Tighter low-income test: a tract's median family income generally can't be above 70% of the state or metro median.
90%It must hold at least 90% of its assets in Opportunity Zone property, tested twice a year.

Opportunity Zones are low-income census tracts where investors can get federal tax breaks for putting capital gains into a Qualified Opportunity Fund. The fund then invests in businesses and property inside the zones. The first zones were picked in 2018 under the 2017 tax law.

The 2025 tax law (Public Law 119-21, signed July 4, 2025) made the program permanent. People call the new version Opportunity Zones 2.0. Governors now nominate new zones every ten years, the low-income test is tighter, and rural zones get extra benefits. Treasury announced the first new list on November 5, 2026, and every tract the governors nominated made the list.

Last checked: November 13, 2026. This page explains the rules only. It is general information, not legal, tax, or financial advice.

The short version

New zones: 6,576 census tracts in all 50 states, the District of Columbia and the U.S. territories. 2,594 of them are rural.
Timing: the new zones take effect January 1, 2027 and last through December 31, 2036.
Old zones: the 2018 zones stay designated through December 31, 2028 (December 31, 2027 in Puerto Rico). But IRS Notice 2026-40 says property bought after December 31, 2026 in an old zone that was not picked again generally won't count, with two narrow exceptions.
The tax break for gains invested after 2026: tax on the gain is put off for up to five years. Hold the investment five years and the taxable gain drops by 10%, or 30% in a qualified rural opportunity fund.
Hold ten years or more and you can elect to pay no tax on the investment's growth, up to 30 years after you invest.
It is a tax break for investors, not a grant or loan. A business gains when a Qualified Opportunity Fund invests in it.

What changed from the first round

Permanent	instead of one set of zones, there is a new round every ten years. The first new zones were certified in 2026.
Tighter low-income test	a tract's median family income generally can't be above 70% of the state or metro median. Tracts next to a zone that don't meet the low-income test can no longer be picked.
Rural boost	funds that invest mostly in rural zones get a bigger basis increase, and rural buildings face a lower bar to count as substantially improved.
Rolling deferral	the old fixed date of December 31, 2026 is replaced by a five-year clock that starts when you invest.
More reporting	the IRS has proposed new information reporting and fund certification rules for the program.

Who qualifies

Under 26 U.S.C. 1400Z-2 and IRS guidance:
Investors: individuals, corporations and partnerships with an eligible capital gain can invest it in a Qualified Opportunity Fund within 180 days of the sale.
Funds: a corporation or partnership becomes a Qualified Opportunity Fund by certifying itself on IRS Form 8996.
Businesses: a Qualified Opportunity Zone business must use substantially all of its tangible property in a zone, earn at least half of its gross income from active business in the zone, and keep limits on cash and passive investments.
Left out: golf courses, country clubs, massage parlors, hot tub and suntan facilities, racetracks and gambling facilities, and stores that mainly sell liquor to take home.

How to get it

How to get started

Look up your census tract. Enter your business address in the Census Bureau's geocoder or the CDFI Fund's mapping tool.
Check that tract against the new 2027-2036 list on the CDFI Fund's Opportunity Zones Resources page. You can download the spreadsheet there or use the CIMS map.
If your business sits in an old zone that was not picked again, ask your tax adviser how Notice 2026-40 affects property you plan to buy after 2026.
If you own a business in a new zone and want outside money, ask a tax adviser whether your business can meet the Opportunity Zone business tests before you talk to funds.
If you have a capital gain to invest, keep track of the 180-day window. The new rules apply to amounts invested after December 31, 2026.
To set up your own fund, a corporation or partnership files Form 8996 with its tax return. Get professional help, since the rules are strict.

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Look beyond

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FAQ

When do the new Opportunity Zones take effect?

The zones Treasury designated on November 5, 2026 take effect January 1, 2027 and stay in effect through December 31, 2036.

How many Opportunity Zones are there under Opportunity Zones 2.0?

Treasury designated 6,576 census tracts, including 2,594 rural tracts. All of the tracts nominated by governors and the mayor of the District of Columbia were designated.

Where can I see the new Opportunity Zone map?

The CDFI Fund's Opportunity Zones Resources page links to the full list of designated tracts as a spreadsheet and to a map in its Community Investment Mapping System (CIMS).

Do the 2018 Opportunity Zones still count?

They stay designated through December 31, 2028, or December 31, 2027 in Puerto Rico. IRS Notice 2026-40 says property a fund or business buys after December 31, 2026 for use in an old zone generally won't count unless the tract was designated again, the purchase follows a written working capital plan adopted by the end of 2026, or it replaces or modernizes existing property in the ordinary course of business.

What counts as a low-income community for Opportunity Zones 2.0?

Under 26 U.S.C. 1400Z-1, a tract counts if its median family income is no more than 70% of the state or metro median, or if it has a poverty rate of at least 20% and a median family income no more than 125% of the state or metro median.

Is Opportunity Zone money a grant or a loan for my business?

Neither. It is a tax break for investors. Your business can get investment from a Qualified Opportunity Fund if it is located in a zone and meets the Opportunity Zone business rules.