Federal Opportunity Zones
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
Check an Address — Free Snapshot
Compare the geocoded point for a Chicago address with the boundary used to screen Federal Opportunity Zones. A match is a location signal; review the current program source for the boundary's role and remaining criteria.
Published criteria — confirm with Internal Revenue Service
- Investment must be in a designated Opportunity Zone census tract
- Must invest capital gains through a Qualified Opportunity Fund
- Most industries qualify except sin businesses (golf, gambling, liquor stores)
Federal Opportunity Zones is screened against the Opportunity Zone (Federal & State) boundary. A geocoded point that intersects that boundary is a location signal, not a determination — review the current program source for the boundary's role and any remaining criteria. A single address can fall inside several overlapping incentive boundaries at once.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · Tax deferral + 0% gains after 10 yrs (OZ 1.0 through 2028; OZ 2.0 eff. 1/1/2027)
Current published terms as of 2026-07-02
- +OZ 1.0 (through 12/31/2028): 0% capital gains tax on new OZ investment profits held 10+ years (still available)
- +OZ 2.0 (effective 1/1/2027): 5-year rolling deferral, 10% basis step-up at 5 years (30% for rural QOFs)
- +Pre-2027 OZ 1.0 investments trigger deferred-gain inclusion on 12/31/2026 unless rolled into OZ 2.0
- +OZ 2.0 caps total exclusion at 30 years post-investment
Application timing can change. Verify current availability and instructions with the administering agency before relying on this program.
Verify current status on the official source- IRS Form 8949 (capital gains documentation)
- IRS Form 8996 (Qualified Opportunity Fund compliance)
- Investment records and QOF documentation
- Property records within the Opportunity Zone
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (800) 829-1040
- Web
- Visit site ↗
Last verified 2026-07-02
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
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Properties in National Register Historic Districts qualify for a 20% federal tax credit on certified rehabilitation costs, one of the most valuable credits available for historic building projects.