In 2017, the Tax Cuts and Jobs Act established the opportunity zones program (OZ), which created tax incentives to spur development in underutilized and underserved areas. To designate a community as an OZ, a state governor must submit it to the U.S. Secretary of the Treasury who then certifies the selection. The original program was a major success, bringing billions of dollars of investment to nearly 10,000 OZs across the country. The One Big Beautiful Bill Act of 2025 made the OZ program permanent, with updates to its tax benefits and requirements.

Starting July 1, states will have a 90-day window to submit tracts for the first round of the enhanced OZ 2.0 program. The Department of the Treasury will then have until the end of the year to certify the selected census tracts. These designations will officially take effect on Jan. 1, 2027. As the program is now permanent, this process will be repeated every 10 years.

The upcoming 90-day window starting July 1 will mark a crucial period for real estate developers. Some states, such as Texas and Florida, have already begun reaching out to developers for input on which tracts to designate. NAIOP members should work with their local development communities to monitor the nominations process and ensure their voice is heard about where best to direct investment.