Opportunity Zone Legislation Updates | Insights and Resources

At Urban Catalyst, we’re keeping a close eye on the evolving landscape around Opportunity Zone legislation, particularly the potential extension of the program currently set to sunset at the end of 2026. As one of the most impactful federal initiatives aimed at driving long-term investment into underserved communities, any updates to this program could have significant implications for investors, developers, and the broader economic ecosystem.

To help our network stay informed and ahead of the curve, we’ve curated a selection of insightful articles, blogs and podcasts from respected industry experts. These resources explore the proposed legislative changes, the likelihood of an extension, and what the Opportunity Zone program might look like moving forward.

Opportunity Zone Legislation Update (May 2025):

THE HOUSE PASSES THE "ONE BIG BEAUTIFUL BILL"

On May 22, 2025, the House passed the Trump Tax Legislation, which includes significant updates to the Opportunity Zone (OZ) program as part of the broader 2025 tax bill.

Key Highlights:

Current OZ designations end December 31, 2026.
A new round of OZs will launch in 2027, with at least 33% located in rural areas.
Post-2026 investments may qualify for:
- 10% basis step-up after 5 years
- 30% step-up for rural-focused OZ funds
The 10-year federal tax-free exit on any fund profits remains intact.
New reporting requirements aim to bring greater transparency to OZ investments.