Tax-Advantaged Investing
Opportunity Zone Investments
Invest in federally designated Qualified Opportunity Zones and unlock powerful capital gains tax benefits while driving economic growth in underserved communities across America. Now expanded under the permanent OZ 2.0 program.
What Are Opportunity Zones?
Opportunity Zones are an economic development tool created under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97) that allows investors to put capital to work in distressed communities across the United States. Their purpose is to spur economic growth and job creation in low-income communities while providing significant tax benefits to investors.
Thousands of low-income communities in all 50 states, the District of Columbia, and five U.S. territories are designated as Qualified Opportunity Zones (QOZs). These zones were nominated by state governors and certified by the U.S. Department of the Treasury. Investors participate through specially structured vehicles known as Qualified Opportunity Funds (QOFs).
Source: IRS.gov — Opportunity Zones (last reviewed October 20, 2026) | HUD.gov — Opportunity Zones
OZ 1.0 vs. OZ 2.0: What Changed
The Opportunity Zone program has been significantly expanded and made permanent under the One Big Beautiful Bill Act, creating a new generation of investment opportunity.
Tax Cuts and Jobs Act of 2017
OZ 1.0
- 8,764 designated census tracts across the U.S.
- Original map in effect through end of 2028
- Temporary program — one-time zone designations
- Deferred gain recognition deadline: December 31, 2026
- 5- and 7-year basis step-up benefits (10% and 15%)
One Big Beautiful Bill Act (2025)
OZ 2.0
- New permanent program — maps redesignated every 10 years
- New OZ 2.0 map in effect through end of 2036
- Governors nominate new census tracts in 2026 for Treasury designation
- Expanded rural area provisions under Notice 2025-50
- Greater long-term certainty for communities and investors
Key Tax Benefits
Investing through a Qualified Opportunity Fund offers three distinct, compounding tax advantages under IRC Section 1400Z-2.
01
Temporary Deferral of Capital Gains
Investors can temporarily defer tax on eligible capital gains by reinvesting those gains into a Qualified Opportunity Fund within 180 days. Under OZ 1.0, the deferred gain is recognized no later than December 31, 2026. OZ 2.0 investments establish a new deferral window for gains invested after the new map takes effect.
02
Reduction of Deferred Gain
If the QOF investment is held for at least 5 years, the basis of the deferred gain increases by 10%. Holding for 7 years increases the basis by an additional 5%, reducing the total taxable deferred gain by up to 15%.
03
Exclusion of Appreciation
If the QOF investment is held for at least 10 years, investors may elect to increase the basis of the investment to its fair market value at the time of sale — effectively eliminating federal capital gains tax on all appreciation earned within the fund.
How It Works
The Opportunity Zone investment process follows a clear, IRS-defined framework.
Realize a Capital Gain
An investor realizes a capital gain from the sale of stock, real estate, a business, or other eligible asset.
Invest in a Qualified Opportunity Fund
Within 180 days of the gain, the investor reinvests the eligible gain amount into a certified Qualified Opportunity Fund (QOF).
Fund Deploys Capital into QOZ Property
The QOF must hold at least 90% of its assets in Qualified Opportunity Zone property — including real estate, businesses, or business property located within a designated zone.
Hold and Benefit
The longer the investment is held, the greater the tax benefit. Maximum benefits are achieved at the 10-year mark, when appreciation within the fund becomes fully tax-free at the federal level.
SolidRock Capital's Approach
We combine deep real estate expertise with rigorous QOZ compliance to maximize both financial returns and community impact — across both OZ 1.0 and the new OZ 2.0 program.
Certified QOF Structuring
Our funds are structured and maintained in full compliance with IRS QOF certification requirements, including the 90% asset test and annual self-certification on Form 8996.
Targeted Zone Selection
We identify QOZs with strong underlying real estate fundamentals — not just favorable tax treatment — ensuring investments are backed by genuine economic demand.
Substantial Improvement Standard
We exceed IRS substantial improvement requirements, investing to meaningfully upgrade properties and create lasting value in the communities we enter, including rural area provisions under Notice 2025-50.
OZ 2.0 Ready
We are actively monitoring the 2026 governor nomination process for the new OZ 2.0 map and positioning our pipeline to take advantage of newly designated zones effective through 2036.
Frequently Asked Questions
Disclaimer: The information on this page is provided for educational purposes only and is based on IRS guidance and HUD resources as of October 2026, including the One Big Beautiful Bill Act OZ 2.0 provisions. It does not constitute tax, legal, or investment advice. Tax laws are subject to change and final OZ 2.0 regulations are pending. Consult a qualified tax advisor and legal counsel before making any investment decisions.
Explore Opportunity Zone Investments with SolidRock Capital
Our investment team is ready to walk you through our current QOZ offerings — including positioning for the new OZ 2.0 program — and help you determine if Opportunity Zone investing aligns with your financial goals.