Previewing The OZ Event In Park City & The Road To OZ 2.0, With Jim Lang

A big Opportunity Zones event coming to Park City, UT next month is set to be the premier gathering for Opportunity Zone investors and other stakeholders ahead of much anticipated OZ 2.0 legislation.

Jim Lang of Greenberg Traurig join the show to discuss what attendees can expect, how the OZ market has evolved since its inception, and why upcoming legislative changes will define the program’s future.

Guest: Jim Lang, Greenberg Traurig

Upcoming OZ Conference: April 9-12 in Park City, UT

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.

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Episode Summary

In this episode of The Opportunity Zones Podcast, host Jimmy Atkinson speaks with Jim Lang, attorney and partner at Greenberg Traurig. Jim shares his extensive experience in Opportunity Zones (OZs), discussing how the industry has evolved since its inception, current trends in OZ investments, and the upcoming legislative changes known as “Opportunity Zones 2.0.” They also discuss Jim’s upcoming OZ industry event, The Yellow Brick Road to QOZ 2.0.

The Evolution and Current State of Opportunity Zones

Jim Lang has been involved with OZs since the very beginning, guiding nearly $20 billion in Qualified Opportunity Fund (QOF) formations. He describes the early days of the OZ program (2018-2019) as the “Wild West,” characterized by limited guidance, uncertainty, and rapid market entry from new participants. Since then, the OZ market has significantly stabilized and matured. Established sponsors who understood compliance and structuring requirements have thrived, while less experienced or committed participants have exited the industry.

Jim notes that regulatory clarity improved substantially around 2020-2021, coinciding with significant capital gains from market growth, leading to a surge in OZ activity.

Estimating the Size of the OZ Market

Jim and Jimmy discuss the size of the OZ market, citing data from Novogradac, which has tracked roughly $40 billion of OZ investment. They both agree that Novogradac likely captures only a fraction of the actual OZ capital invested, particularly given that many family offices and private investors do not publicly disclose investments. Jim’s personal estimate of total OZ investment since inception is about $250 billion—a figure significantly higher than commonly cited industry estimates. He notes that private family office investments significantly impact this figure.

Preparing for Upcoming OZ Legislation

The OZ incentive is currently set to sunset at the end of 2026 unless extended by Congress. Jim outlines the importance of industry stakeholders working together to influence upcoming legislation (often called “OZ 2.0”). He emphasizes that while fund managers cannot precisely plan for legislative outcomes, they should closely follow developments, ensure documentation is flexible, and advocate for beneficial policy outcomes. Jim also highlights specific industry priorities, such as extending the capital gains deferral deadline from 2026 to 2028 and resolving practical challenges, like accessing financing to pay taxes due in 2027.

Upcoming OZ Industry Event: “Yellow Brick Road to QOZ 2.0”

Jim announces a major OZ event scheduled for April 9-12, 2025, in Deer Valley, Utah, named The Yellow Brick Road to QOZ 2.0. This conference is designed for OZ stakeholders—investors, fund managers, policymakers, accountants, attorneys, and service providers—to collaborate on shaping OZ 2.0 legislation and policy.

Key aspects of the event include:

  • Legislative policy discussions on the future of OZ incentives.
  • Networking opportunities for sponsors, investors, and service providers.
  • Panels featuring industry leaders and stakeholders from various sectors, including sports and entertainment, hospitality, industrial, logistics, agriculture, and rural development.
  • Opportunities for capital matching between fund managers and investors.
  • High-profile keynote speakers and policy influencers, including representatives from the Opportunity Funds Association, Novogradac, and prominent family offices.

The event specifically aims to ensure industry-wide alignment on policy messaging to policymakers and lawmakers as the OZ program evolves.

Complex and Creative OZ Deal Structures

Jimmy and Jim discuss creative approaches and unique OZ structures observed at Greenberg Traurig. Jim identifies a trend toward “pre-TCO” or pre-completion acquisitions, where investors take less development risk by entering projects nearing stabilization. Additionally, preferred equity deals are increasingly common as investors seek senior positions in capital stacks.

Jim also points out the growing complexity of OZ projects involving layered incentives, such as new market tax credits, low-income housing tax credits, and state-level incentives like brownfield tax credits. He highlights that these layered projects require advanced structuring and extensive tax planning expertise.

Challenges for New Sponsors Entering the OZ Market

Despite the maturity of the OZ market, Jim acknowledges many newcomers are still entering the OZ space. He advises first-time sponsors to seek experienced OZ attorneys and accountants early in their planning process to ensure proper compliance and fund structure. Jim notes that correcting poorly structured OZ deals later is significantly more complicated and costly than getting them right initially.

OZ Fund Structuring and Practical Considerations for 2026

Jim explains that sponsors must currently plan based on existing OZ legislation and assume the capital gains deferral deadline remains December 2026. He highlights the importance of carefully timing new fund launches to align with legislative developments and market conditions. He mentions that some fund managers have developed innovative financing options, such as margin loans, to help investors manage their upcoming tax liabilities from deferred gains.

Final Takeaways

  • OZ market has stabilized since the early days, with experienced sponsors succeeding and inexperienced sponsors exiting.
  • Private and family office investment in OZs is substantial, likely pushing total OZ capital into hundreds of billions.
  • Upcoming legislation (OZ 2.0) could significantly reshape the OZ landscape; industry advocacy is crucial to shaping beneficial outcomes.
  • Fund managers must strategically plan fund launches around anticipated legislative changes and current tax liabilities.
  • The upcoming Yellow Brick Road to QOZ 2.0 conference provides an essential forum for industry alignment, policy discussion, and deal-making opportunities.

Jim concludes by encouraging sponsors and investors to engage proactively in policy discussions and leverage industry resources to maximize the potential of Opportunity Zones.