Answer
Aug 14, 2025 - 11:25 AM
I'll tell you that the zones are determined largely by the governors of each of the respective states who were originally given criteria created by the original law for how to determine where the zones would be. And when you combine the federal government and state governments together to come up with where zones should be that have tax benefits, you know, it should be intuitive to you that that is a recipe for, you know, for politicking, obviously. And so, you know, the 8,700 zones that all sort of came out of the 2017 bill... are now going to be basically replaced with a new set of zones that will all be released in July of, I believe it's July of 2026. So unless you're going to invest soon in a Qualified Opportunity Zone fund, it's quickly becoming less relevant where those zones are located, Now, I would have to assume that based on the criteria, many of the zones today will survive that review. But from what I'm told by folks in the know, that there will be fewer zones than the 8,700 that exist today, partially because they clamp down on one of the eligibility requirements from an income perspective. But for those of you who own property, in a Qualified Opportunity Zone fund zone, in a Qualified Opportunity Zone, then even if you're not interested in investing in a QSE fund, you still want to know if your real estate is in such a zone because that can enhance its market price, particularly those of you who might own property where you have vacant land or you've got property that be worth more to a developer than it is to a future investor for the rental property you have. So it's a good idea to be aware of whether your existing real estate is in the QOZ simply for future sales purposes. But yeah, we won't know where the new zones will be located until next year.
