Treasury Seeks Comment on Opportunity Zone Rules as States Finalize New Maps

New designations take effect January 2027 and are expected to reduce eligible zones by 26 percent from the original program.

By the Family Office Real Estate Daily Desk·Thursday, October 1, 2026·1 min read

Editorial summary of reporting byThe Real Estate Roundtable Our editorial standards →

The answer · checked against The Real Estate Roundtable

What are the key changes to Opportunity Zone rules and maps taking effect in 2027?

Treasury and the IRS are seeking public comments by November 23 on rules for the permanent Opportunity Zone program, covering housing investment, working capital, and long-held investments. Governors face a September 28 deadline to nominate zones for new maps taking effect January 1, 2027, with roughly 6,500 zones expected nationwide — nearly 26 percent fewer than the 8,764 designated under the original program.

Key facts

Treasury and the IRS issued a September 22 notice requesting comments on the permanent Opportunity Zone program, with comments due November 23, according to Tax Notes and Bloomberg Law.
Governors are finalizing OZ nominations ahead of a September 28 deadline, with a 30-day extension available upon request, according to the source text.
The new Opportunity Zone designations take effect January 1, 2027 and remain in place for 10 years, according to the source text.
Roughly 6,500 zones could be selected nationwide under the new maps, nearly 26 percent fewer than the 8,764 designated under the original program, according to Bisnow on September 15.
Sen. Hawley (R-MO) introduced the No Tax Breaks for Data Centers Act, which would exclude data centers from OZ tax benefits while preserving the incentive for other eligible investments, according to a Sen. Hawley press release dated September 17.
The Real Estate Roundtable's Opportunity Zone Working Group met with Treasury and IRS staff in August to discuss guidance for projects spanning the original and permanent OZ programs, according to the source text.

Treasury Seeks Comment on Opportunity Zone Rules as States Finalize New Maps — Image: editorial illustration · Story sourced from The Real Estate Roundtable

Treasury and the Internal Revenue Service requested comments on how to implement the permanent Opportunity Zone program in a September 22 notice. The request covers housing investment, working capital rules, operating businesses and the tax treatment of long-held investments. Comments are due November 23.

The request follows proposed regulations issued September 11 on reporting requirements for Qualified Opportunity Funds and Opportunity Zone businesses. Those regulations also address fund certification and decertification. Comments on that separate proposal are due October 16.

Governors are finalizing nominations for the next generation of Opportunity Zones ahead of a September 28 deadline. A 30-day extension is available upon request. Treasury will certify the new designations, which take effect January 1, 2027 and remain in place for 10 years.

Tighter eligibility rules are expected to significantly reduce the number of designated zones. Roughly 6,500 zones could be selected nationwide, nearly 26 percent fewer than the 8,764 designated under the original program.

The Real Estate Roundtable's Opportunity Zone Working Group urged Treasury and the IRS to adopt clear, workable rules that allow existing projects to continue through the transition to the permanent program. The group met with Treasury and IRS staff in August to discuss guidance for projects spanning the original and permanent programs.

Senator Josh Hawley introduced the No Tax Breaks for Data Centers Act on September 17. The bill would exclude data centers from Opportunity Zone tax benefits while preserving the incentive for other eligible investments. The bill follows a House Democratic proposal that would deny covered data centers both Opportunity Zone eligibility and 100 percent bonus depreciation.

While the original program attracted significant multifamily investment, developers are now pursuing designations for a broader range of real estate projects, including mall redevelopments and data centers.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The 26 percent reduction in eligible zones creates a two-tier market. Projects in zones that retain designation will see capital concentration and likely better pricing. Projects in zones that lose status face a January 2027 cutoff for new Qualified Opportunity Fund commitments, though existing investments can continue through the statutory 2028 expiration.

Co-investment alongside regional developers who secured early intelligence on gubernatorial nominations offers the clearest route. Direct ownership via a separate Qualified Opportunity Fund remains viable but requires certainty on the new maps before committing capital. The November 23 comment deadline suggests final rules will not arrive until mid-2027, creating a window of regulatory ambiguity.

Underwrite housing and mixed-use projects in zones likely to retain designation under tighter eligibility. Price in the risk that working capital and long-held investment rules may tighten from current guidance. Avoid data center plays until legislative clarity emerges on the Hawley bill and the House proposal, either of which would eliminate the tax advantage entirely.

The shift from 8,764 zones to roughly 6,500 implies winners and losers at the census-tract level. Know which tracts your pipeline sits in and whether the governor's office has signaled intent to renominate them. Projects that span the transition need legal structure that bridges both programs without triggering decertification.

Questions this story answers

01When do the new Opportunity Zone maps take effect and how long do they last?

The new Opportunity Zone designations take effect January 1, 2027 and remain in place for 10 years, according to the source text. Governors face a September 28 deadline to submit nominations, with a 30-day extension available upon request, and Treasury will certify the final designations.

02How many Opportunity Zones will exist under the new program compared to the original?

Roughly 6,500 zones could be selected nationwide under the new maps, according to Bisnow on September 15. That would be nearly 26 percent fewer than the 8,764 zones designated under the original program, due to tighter eligibility rules.

03What types of real estate projects are developers pursuing for new Opportunity Zone designations?

04Could data centers be excluded from Opportunity Zone tax benefits?

Sen. Hawley (R-MO) introduced the No Tax Breaks for Data Centers Act, which would exclude data centers from OZ tax benefits while preserving the incentive for other eligible investments, according to a September 17 press release. A separate House Democratic proposal, the Reverse Big Ugly Tax Breaks for Data Centers Act, would also deny covered data centers both OZ eligibility and 100% bonus depreciation.

05What has the Real Estate Roundtable asked Treasury and the IRS to clarify for existing Opportunity Zone projects?

The Real Estate Roundtable's Opportunity Zone Working Group urged Treasury and the IRS to adopt clear, workable rules allowing existing projects to continue through the transition to the permanent program. In July 29 comments, RER sought clearer rules for multiphase projects, property improvements, and continued investment in original OZ tracts through their statutory expiration in 2028.

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