With OZ permanence, new designations coming, Novogradac releases updated Mapping Tool. The One Big Beautiful Bill Act (OBBBA) made the opportunity zones (OZ) incentive a permanent part of the tax code and as a part of permanence, replacement sets of OZs are scheduled to be designated every 10 years, with the next set of designations to take effect Jan. 1, 2027. Current OZs will keep their designation through Dec. 31, 2028, so it is expected that there will be two sets of OZs in effect for 2027 and 2028. During 2018, the chief executives of each state and territory were allowed to nominate up to 25% of their low-income communities as OZs. The term "low-income community" was a census tract where the median family income did not exceed 80% of the areawide median family income or that had a poverty rate of at least 20%. Additionally, up to 5% of the nominated tracts could be census tracts that were not low-income communities but were contiguous with a low-income community census tract, provided the tract's median family income was not more than 125% of the low-income community census tract with which it was contiguous. Nominations were submitted to the Treasury Department, which officially designated the OZs. Under OZ 2.0, the threshold for eligibility is reduced from 80% of areawide median family income to 70% and contiguous tracts may no longer be nominated. There are currently 8,764 OZ census tracts but that number is expected to drop to fewer than 7,000 under OZ 2.0. Beginning July 1, 2026, governors will be given up to 120 days to nominate 25% of their respective states' eligible census tracts to be designated as OZs. The Department of the Treasury will then have up to 60 days to complete its OZ designation process. It is expected that all census tracts designated as OZs will be known by the end of 2026. In anticipation of the new round of OZ designations scheduled to go into effect Jan. 1, 2027, Novogradac developed and made freely available to the public a mapping tool that identifies census tracts that, based on the latest Census data (American Community Survey [ACS] 2019-2023 data), are expected to be eligible for designation as OZs. It is anticipated that the ACS 2020-2024 data, expected to be released later in 2025, will be the dataset used to determine eligibility for OZ designation, so as this information becomes available, the Novogradac OZ 2.0 Mapping Tool will be updated. The Novogradac OZ Mapping Tool also identifies census tracts that are likely to be deemed to be rural for the purpose of additional benefits available to investors for investing into rural OZs. The mapping tool can also be used to identify currently designated OZs and which of those have been identified as rural OZs under IRS Notice 2025-50, which was published Sept. 30. * Currently designated OZ census tracts (designated in 2018), * Which of the current OZ census tracts are rural OZs under IRS Notice 2025-50, * Census tracts that, based on the most recent available data, are likely to be eligible/ineligible for designation as OZs during the designation period scheduled to begin July 1, 2026, * Boundaries of nonrural areas based on the most recent U.S. Department of Agriculture (USDA) data, * Whether eligible census tracts are likely/not likely in rural areas. How to use the tool. To start, choose which of the three layers to display on the map, click on the "New Map" button in the upper left corner of the map to select. The mapping tool opens, showing expected eligibility for designation and treatment as rural. The user is given many options for identifying census tracts that are expected to be eligible. The mapping tool's search feature defaults to Location, where the user may enter an address, city, state, ZIP code or even latitude/longitude. The tool will then zoom to that level, where the user can than left click anywhere within a census tract to get additional information, including poverty data. By left clicking on "Location" the user can also select from numerous other options, such as census tract, congressional district or metro area to generate other maps. This feature is very useful to those who would like to see current OZs or potentially eligible OZs located in a particular U.S. representative's district. A second layer that can be added or viewed independently is a listing of current OZ designations which are scheduled to remain in place until Dec. 31, 2028. While most of the additional benefits under OBBBA become effective Jan. 1, 2027, the reduced 50% substantial improvement for properties located in rural OZs went into effect upon enactment. IRS Notice 2025-50 identifies 3,309 of the current OZs as rural OZs in which this reduced substantial improvement benefit is in effect. This layer for current OZs incorporates this new data so that when a user left clicks on a census tract, it will be identified as rural or not rural. The third available layer is an overlay of the USDA's Rural Business Service ineligibility map. This map corresponds to the definition of rural OZs in the OBBBA and provides a visual representation of areas that are expected to be considered rural and nonrural for purposes of additional OZ benefits. The interaction between the rural areas layer and the potential OZ eligibility map creates a few potential categories for each census tract, each of which is color coded on the mapping tool: To remove one or more layers, click the red "x" next to the layer's name in the upper right corner of the map. For additional information about a census tract, left click anywhere within the census tract. This map is for informational purposes only and is based on the American Community Survey 2019-2023 data. It is expected that Treasury will use additional data that has not yet been released to determine both census tract eligibility and whether a census tract is rural. The OZ Mapping Tool is seeing heavy traffic from users who are reporting that the functionality of the map is helping them to visualize areas that are expected to be eligible for designation so that they can begin making preparations for potential OZ projects. There are still open questions around how the rural provisions will be defined for the next set of OZ designations. The Novogradac OZ Working Group will be working diligently over the next few months to provide the Treasury with consensus recommendations concerning this and other issues. If you would like to add your voice and participate in the regulatory process, consider joining the Novogradac OZWG. For membership details contact [email protected].

Novogradac's 2025 OZ Summit: what's next for OZ 2.0. The Opportunity Zone industry's top professionals will gather in Las Vegas on December 3, 2025, for the Novogradac 2025 Opportunity Zones Summit, a one-day event at the Four Seasons dedicated to unpacking the next chapter of Opportunity Zones 2.0. Novogradac partners Jason Watkins and Kevin Wilson join the show to preview the summit, share the latest fundraising and compliance trends, and discuss what Treasury guidance may look like as the industry transitions from OZ 1.0 to OZ 2.0. Guests: Jason Watkins & Kevin Wilson. About The Opportunity Zones Podcast. Hosted by OpportunityZones.com founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry. Listen now. Episode summary. In this episode of The Opportunity Zones Podcast, Jimmy Atkinson welcomes Jason Watkins and Kevin Wilson, both partners at Novogradac & Company, to preview the upcoming Novogradac 2025 Opportunity Zones Summit in Las Vegas and discuss the latest developments surrounding Opportunity Zones 2.0. The conversation covers OZ fundraising trends, regulatory priorities, rural incentives, and expectations for Treasury guidance as the industry transitions from OZ 1.0 to OZ 2.0. About Novogradac & Company. Jason introduces Novogradac as a national, full-service accounting firm specializing in tax credit transactions, including Opportunity Zones, low-income housing, new markets, renewable energy, and historic tax credits. He notes that the firm was involved in OZ policy discussions even before the incentive was introduced in Congress. Kevin adds that Novogradac assists investors at every stage - from transaction structuring and financial modeling to compliance and tax filings - helping clients navigate evolving OZ regulations. Opportunity Zone fundraising trends. Jimmy highlights Novogradac's quarterly fundraising survey, which tracks equity raised by Qualified Opportunity Funds (QOFs). Jason reports that through Q2 2025, funds raised over $1 billion in new equity, one of the strongest quarters in recent years. He notes that while many expected a "dead zone" in capital formation leading up to 2026, fundraising has remained steady. Kevin points out that those results preceded the passage of OZ 2.0 in July 2025, suggesting that upcoming surveys could show a further uptick as the new law creates long-term stability. Jason expects fundraising to flatten slightly in 2026 before surging again in 2027, when the new five-year deferral and 10 percent basis step-up become available for gains invested on or after January 1, 2027. OZ 2.0: transition and implementation challenges. Turning to OZ 2.0, Jimmy asks what Novogradac is hearing from clients and what issues they're tracking. Kevin says renewed excitement is palpable, with practitioners and community developers eager to deploy capital under the new permanent framework. Still, several open questions remain around implementation. Jason explains that Novogradac's Opportunity Zones Working Group has been preparing a series of comment letters to Treasury, focusing first on transition guidance from OZ 1.0 to 2.0. A top priority is clarifying what happens when existing OZ tracts lose designation on December 31, 2028, and ensuring that projects already underway can continue to qualify for OZ benefits. He emphasizes the need for Treasury to provide explicit rules so developers and investors maintain confidence in ongoing projects. Kevin adds that a prior bill, the Opportunity Zone Transparency, Extension, and Improvement Act (OZTIEA), contained language that could address this issue. Although never enacted, they hope Treasury will incorporate similar provisions in forthcoming regulations. Overlap between OZ 1.0 and OZ 2.0 tracts. Jimmy asks about the two-year overlap between OZ 1.0 and OZ 2.0 zones in 2027 - 2028. Jason confirms that OZ 2.0 dollars invested during that period should be deployable into existing OZ 1.0 tracts through the end of 2028. Kevin agrees, noting that this overlap is one of the most common questions they receive. Rural incentives and substantial improvement thresholds. The discussion turns to IRS Notice 2025-50, which lists rural OZ tracts eligible for a reduced 50 percent substantial improvement threshold, down from the usual 100 percent. Jason calls the change a major incentive for rural investment and praises Treasury for issuing guidance quickly. However, he says Novogradac is seeking clarification on whether the rule applies retroactively to properties acquired or improved before July 4, 2025. Kevin notes that this rural incentive differs from another provision - a larger basis step-up for investments in rural Qualified Opportunity Funds - which takes effect in 2027. The firm's working group will request confirmation on both points in its initial Treasury letter. Puerto Rico designation clarification. Jason also highlights uncertainty around the special rule for Puerto Rico, which is scheduled to expire December 31, 2026. Novogradac is asking Treasury to confirm whether that expiration applies only to future designations or also to existing OZ tracts on the island. The firm believes the intent is for Puerto Rico's current tracts to remain active through 2028, consistent with the rest of the U.S., but wants an explicit ruling. Aligning OZs with affordable housing. Kevin mentions ongoing conversations about better aligning OZs with the Low-Income Housing Tax Credit (LIHTC) program. Currently, Opportunity Zone projects require a 100 percent substantial improvement, while LIHTC deals have a lower threshold. Novogradac believes Treasury could use regulatory authority to harmonize these requirements, facilitating joint OZ - LIHTC developments. Preview: Novogradac 2025 Opportunity Zones Summit. The episode then shifts to previewing the upcoming Novogradac 2025 OZ Summit, taking place December 3, 2025, at the Four Seasons Las Vegas. Jason and Kevin outline what attendees can expect: * Washington Report opening panel covering the latest legislative and regulatory updates * Detailed OZ 2.0 panel reviewing key statutory changes and new incentives * Operating Business and Rural Focus panels featuring companies leveraging OZ capital for growth * Networking opportunities throughout the day, connecting investors, fund managers, and advisors * Regulatory guidance panel exploring what Treasury can clarify through rulemaking versus what requires new legislation Jason notes that this year's event will likely be the largest OZ Summit in years, with registration already matching or exceeding last year's Washington D.C. turnout. Kevin adds that the permanence of the incentive has reignited institutional interest, reversing the decline in attendance seen as the original 2026 sunset approached. Jimmy reflects on past conferences - from Long Beach and Cleveland to D.C. - and recalls the excitement surrounding the 2024 election results that paved the way for OZ 2.0. He predicts record attendance this year as more family offices, RIAs, accounting firms, and law firms re-engage with Opportunity Zones now that the program is permanent. Novogradac's ongoing policy work. Kevin emphasizes that the firm's policy advocacy is not finished. Beyond transition rules, Novogradac continues to push for additional enhancements through future legislation or bipartisan tax packages. Jason invites listeners to explore the firm's Opportunity Zones Working Group webpage - accessible via Novoco.com or a simple Google search - to view all published comment letters and ongoing initiatives. Registration and OZ Insiders Dinner. Jimmy reminds listeners that they can save 10 percent on registration for the Novogradac 2025 OZ Summit using promo code OZ10 at checkout on Novoco.com. He also announces the OZ Insiders Members Dinner, to be held the evening before the summit (December 2) at Mandalay Bay. Members can RSVP at OZInsiders.com. The conversation concludes with mutual excitement for the December events and optimism about the future of the Opportunity Zone program under its new permanent framework. Jimmy thanks Jason and Kevin for their insights and encourages listeners to visit OpportunityZones.com/podcast for show notes, registration links, and resources mentioned in the episode.

Honor Named for Late Novogradac Senior Manager, NMTC Program Manager for CDFI FundSAN FRANCISCO, June 2, 2025 /PRNewswire/ -- Novogradac recognizes Gina Nisbeth as the recipient of the 2025 Robert E. Ibanez Award for Outstanding Achievement in Community Development as part of the 2025 Novogradac Journal of Tax Credits Awards.Introduced in 2024, the Robert E. Ibanez Award for Outstanding Achievement in Community Development reflects the recipient's vision, leadership, innovation and impact in advancing the mission of community development.Nisbeth is founder and president of 9th and Clinton, a firm that provides strategic advisory and investment structuring guidance to real estate developers, fund managers, nonprofits and for-profit organizations investing in low-income communities. Before founding her own agency, Nisbeth spent more than two decades in various roles with Citi, including as director of its structured lending and investment group of the markets division, its executive in residence with a minority deposit institution, manager of $1 billion nationwide in new markets tax credit (NMTC) investments and president of its community development entity (CDE). Additionally, Nisbeth co-founded Open Access, a national fellowship program that seeks to increase representation of Black and Latinx professionals in community development finance."Receiving this award is such an honor," said Nisbeth. "When you are being honored in somebody else's name who is deceased, their life's story is complete