The current administration has unveiled a tax reform package that will change the federal opportunity zone program, according to AltsWire. Planned to launch in 2027, the package proposes second-round opportunity zone designations as well as reforms that aim to direct capital to rural and distressed communities.
Key changes in the proposal include a new six-year designation window from 2027 to 2033, tight eligibility criteria, a rural investment requirement and post-tax investment flexibility, among others. The stricter eligibility criteria would disqualify gentrifying areas and only focus on census tracts with significant low-income levels. This proposed tax reform package includes a rural investment requirement, where 33 percent of new opportunity zones must be in rural areas. The bill also includes a section for “rural qualified opportunity funds,” to attract investments targeting underdeveloped regions. The bill also offers middle-income investors an opportunity to con