Key takeaways
- Governors' nomination window opened July 1, 2026 and closed September 28, 2026, or about October 28, 2026 with the 30-day extension.
- New zones take effect January 1, 2027 and run through December 31, 2036; zones on the current map expire December 31, 2028.
- Gain still deferred from QOF investments made before 2027 is included in income on December 31, 2026, and Notice 2026-40 says it cannot be deferred again.
- For an investment made on or after January 1, 2027, deferred gain is taxed at the earlier of a sale or five years after the investment date.
- After 10 years an investor can exclude appreciation; for sales after the 30th anniversary, basis is fixed at fair market value on that anniversary.
- Comments on proposed reporting regulations were reported due October 26, 2026, and comments under Notice 2026-55 are due November 23, 2026.
What are the key Opportunity Zone dates for 2025 to 2027?
The rules were enacted July 4, 2025, the new zones and the new investor rules start January 1, 2027, and the guidance needed to run them was issued through 2026.1,2
| Date | Event | Why it matters |
|---|---|---|
| Jul 4, 2025 | Public Law 119-21 signed | Program made permanent; 50% rural substantial improvement rule effective |
| Sep 30, 2025 | Notice 2025-50 | Rural-area definition; 3,309 wholly rural zones on the current map |
| Jan 29, 2026 | 2020 to 2024 ACS five-year data released | Data used to decide tract eligibility |
| Apr 2026 | Rev. Proc. 2026-14 | Nomination procedures; 25,332 eligible tracts |
| Jun 18, 2026 | Notice 2026-40 | Transition rules between the current and new maps |
| Jul 1, 2026 | Determination date | 90-day nomination window opens |
| Sep 11, 2026 | Proposed reporting regulations (REG-116506-25) | New Form 8996 and §6039K/§6039L reporting; not final |
| Sep 22, 2026 | Notice 2026-55 | Request for comments on §1400Z-2 issues |
| Sep 28, 2026 | Base nomination deadline | At least 16 of 56 jurisdictions had filed |
| Oct 26, 2026 | Reported comment deadline on proposed reporting rules | Rules apply prospectively once final |
| About Oct 28, 2026 | Extended nomination deadline | One 30-day extension |
| Nov 23, 2026 | Notice 2026-55 comments due | May shape working capital, inclusion event and 30-year rules |
| Late Nov to Dec 2026 | Treasury certification | Within 30 days of nomination, extendable 30 days |
| Dec 31, 2026 | Inclusion date for pre-2027 deferred gain | Taxable for 2026; cannot be re-deferred |
| Jan 1, 2027 | New zones and new investor rules take effect | Rolling 5-year deferral; 10% or 30% step-up |
Sources cited for these dates include the IRS announcements of Notice 2025-50 and Rev. Proc. 2026-14, Notice 2026-40, the proposed regulations and Notice 2026-55.3,4,5,6,7
When do the new Opportunity Zones start and end?
The new zones take effect January 1, 2027 and remain in effect through December 31, 2036.5,8 New zones are designated every 10 years, so the next determination date is July 1, 2036.1
Fig. 1Zone map dates
Jul 1, 2026
Nominations open
90-day window
About Oct 28, 2026
Extended deadline
Last nominations
Jan 1, 2027
New zones begin
10-year period
Dec 31, 2028
Current zones expire
Per Notice 2026-40
Jul 1, 2036
Next determination date
Next 10-year cycle
Dec 31, 2036
New zones end
Unless redesignated
Under Notice 2026-40, property acquired after 2026 in a current zone that is not redesignated generally does not qualify as qualified opportunity zone business property, with narrow exceptions such as a working capital plan adopted before December 31, 2026 with at least 10% of the working capital received and 5% spent by that date.9,10 See the new Opportunity Zone maps taking effect in 2027.
What are the key dates for an Opportunity Zone investor?
Every investment runs on its own clock, measured from the sale that created the gain and from the date the gain is invested in a Qualified Opportunity Fund (QOF).1,11
Fig. 2An investor's clock for gains invested on or after January 1, 2027
Day 0
Gain realized
Sale date starts the 180-day period
Day 180
Invest by now
Cash into a QOF; elect deferral
Year 5
Deferred gain included
Less 10% step-up, or 30% for a QROF
Year 10
Exclusion available
Elect basis equal to fair market value
Year 30
Basis cap
Fair market value fixed at the 30th anniversary
- 180 days. A gain must be invested within 180 days, generally starting on the sale date. Partners and S corporation shareholders can elect alternative start dates, including the due date of the entity's return without extensions. See the 180-day rule.12
- Five years. The deferred gain is included in income in the tax year containing the earlier of a sale of the QOF interest or five years after the investment date. See the five-year deferral.11
- Ten years. After 10 years the investor may elect, on a sale, to step basis up to fair market value, excluding the appreciation.1
- Thirty years. For a sale after the 30th anniversary, basis is fixed at fair market value as of that anniversary, so later appreciation is taxable. The mechanics for valuing the investment at year 30 are among the questions in Notice 2026-55.7,13
Worked example with real dates (illustrative)
An investor sells stock on March 15, 2027 for a $500,000 long-term gain. Counting the sale date as day 1, the 180-day period ends September 10, 2027. The investor puts $500,000 into a standard QOF on June 1, 2027. The deferred gain is included on June 1, 2032 (in the 2032 tax year), reduced by the 10% step-up, so $450,000 is taxed, or about $107,100 at 23.8% assuming no state tax and an investment worth at least $500,000. The 10-year exclusion becomes available on June 1, 2037. Appreciation after June 1, 2057 would be taxable.
What deadlines apply to Opportunity Funds and their businesses?
Funds and Qualified Opportunity Zone Businesses (QOZBs) run their own deadlines, set mostly by the Treasury regulations in T.D. 9889.14,15
| Rule | Period | What it requires |
|---|---|---|
| QOF 90% asset test | Two semiannual testing dates | Generally the end of the first six months and the end of the tax year |
| New cash at the QOF | 6 months | Recently contributed cash can be excluded from the 90% test |
| Reinvestment of QOF proceeds | 12 months | Proceeds count as qualifying if reinvested within 12 months |
| Working capital safe harbor (QOZB) | 31 months | Written plan and schedule for cash spent on zone property |
| Extended working capital | Up to 62 months | Overlapping or sequential plans for start-ups |
| Disaster extension | Up to 24 months | For zones in federally declared disaster areas |
| Substantial improvement | 30 months | Basis additions over 100% of building basis (50% in wholly rural zones) |
| Vacancy for original use | 3 years | A building vacant this long is treated as original use |
| Form 8996 and Form 8997 | Annually | Filed with the return; proposed rules would make Form 8996 a separate information return |
The new information-reporting penalty under §6726 is $500 per day, capped at $10,000 per return, or $50,000 for a fund with gross assets over $10 million.6 See the working capital safe harbor and Form 8996 and Form 8997.
How do Opportunity Zone dates line up with a data center build?
A data center's longest lead item is usually power, not construction, so the 31-month working capital safe harbor and the 62-month maximum are the dates to plan around.15,16
Fig. 3Illustrative data center project against Opportunity Zone clocks
Illustrative- First working capital planLand, design, long-lead equipment
- Maximum with sequential plansFrom first cash infusion
- Utility large-load serviceCan run 4 to 7 years in constrained markets
- Shell and fit-out construction
- Substantial improvement window (existing building)
- Hold to the 10-year exclusion
Dominion Energy said in 2024 that connecting data centers above 100 MW in Northern Virginia could take up to seven years.16 Utility study and construction delays are not obviously the kind of governmental permitting delay that tolls the safe harbor, and no guidance found addresses the point. As a practical matter, choose sites with power in hand or near term, and size each capital call to a plan it can meet. See data center power timelines and the Opportunity Zone clock.
Which Opportunity Zone dates are still uncertain?
Four dates were not fixed as of October 20, 2026: the last Treasury certifications, the publication of a consolidated 2027 zone list, the effective date of final reporting regulations, and any rule changes following Notice 2026-55.8,6,7
- Certification. Counting from the extended deadline of about October 28, certification is due by about November 27, 2026, or late December 2026 with Treasury's extension. Texas expected certification by November 28, 2026.17
- Reporting rules. The proposed regulations would apply prospectively once finalized; no final date was set.6
- Notice 2026-55. Comments close November 23, 2026 on topics including working capital plan changes, inclusion events and the 30-year election.7
- Transition regulations. Notice 2026-40 announced proposed regulations on the transition rules, which had not been issued.5
Common questions
When do the new Opportunity Zones take effect?
January 1, 2027. They remain in effect through December 31, 2036, and a new designation cycle begins on July 1, 2036.
When does deferred gain have to be paid for a 2027 investment?
In the tax year that includes the earlier of the date you sell the QOF interest or five years after the investment date. An investment made June 1, 2027 is included on June 1, 2032, less the 10% or 30% step-up.
What happens on December 31, 2026?
Gain still deferred from QOF investments made before 2027 is included in income on that date, and Notice 2026-40 says that gain cannot be deferred again in a new QOF. It is also the date before which a working capital plan must be adopted, with at least 10% of the working capital received and 5% spent, to preserve some investments in current zones that are not redesignated.
When do the current Opportunity Zones expire?
Under Notice 2026-40, zones on the current map generally expire December 31, 2028, and December 31, 2027 for Puerto Rico.
How long does a QOZB have to spend its cash?
Up to 31 months under a written working capital plan, and up to 62 months from the first cash infusion with overlapping or sequential plans. Government delays on completed applications can toll the period (whether utility interconnection delays count is unsettled), and a federally declared disaster can add up to 24 months.
Is the 30-year rule in effect now?
Yes, for investments made on or after January 1, 2027. For a sale after the 30th anniversary, basis is fixed at fair market value on that anniversary. How that value is determined without a sale is an open question in Notice 2026-55.
Sources
Every numbered note in this guide links to the source below.
- 1.U.S. Government Publishing Office, “26 U.S.C. 1400Z-2, Special rules for capital gains invested in opportunity zones,” 2025. govinfo.gov
- 2.Congress.gov, “Text, H.R.1, 119th Congress,” 2025. congress.gov
- 3.Internal Revenue Service, “Treasury, IRS provide guidance for Opportunity Zone investments in rural areas under the One, Big, Beautiful Bill,” 2025. irs.gov
- 4.Internal Revenue Service, “Treasury, IRS provide guidance to States for nominating census tracts as qualified opportunity zones,” 2026. irs.gov
- 5.Internal Revenue Service, “Notice 2026-40, Transitional Guidance on Qualified Opportunity Zones,” 2026. irs.gov
- 6.Federal Register, “Information Reporting Regarding Qualified Opportunity Zones and Updated QOF Certification and Decertification Procedures, 91 FR 57968,” 2026. govinfo.gov
- 7.Internal Revenue Service, “Notice 2026-55, Request for Additional Comments on Issues under Section 1400Z-2,” 2026. irs.gov
- 8.OpportunityZones.com, “OZ 2.0 Nominations: Where Things Stand After the 90-Day Deadline,” 2026. opportunityzones.com
- 9.Cherry Bekaert, “IRS Notice 2026-40: New Opportunity Zone Rules,” 2026. cbh.com
- 10.Holthouse Carlin & Van Trigt, “Ten Things to Know About the IRS's Recent OZ 1.0 to 2.0 Transition Guidance,” 2026. hcvt.com
- 11.RSM US, “The OBBBA rekindles opportunity zones: What it means for real estate,” 2025. rsmus.com
- 12.Holland & Hart, “Taxpayer-Favorable Final Opportunity Zone Regulations Issued,” 2019. hollandhart.com
- 13.Current Federal Tax Developments, “IRS Solicits Technical Comments on Opportunity Zone Regulations Post-OBBBA (Notice 2026-55),” 2026. currentfederaltaxdevelopments.com
- 14.eCFR, “26 CFR 1.1400Z2(d)-1, Qualified opportunity funds and qualified opportunity zone businesses,” n.d. ecfr.gov
- 15.ArentFox Schiff, “Qualified Opportunity Zones, the Final Regulations: What's New, What's Changed, and What's Stayed the Same,” 2020. afslaw.com
- 16.Bloomberg (via BNN Bloomberg), “Data centers face seven-year wait for power hookups in Virginia,” 2024. bnnbloomberg.ca
- 17.Office of the Texas Governor, “Federal Opportunity Zones in Texas,” n.d. gov.texas.gov
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