The Yellow Brick Road To OZ 2.0

On this month’s live episode of OZ Office Hours, OpportunityZones.com founder Jimmy Atkinson discusses the upcoming Yellow Brick Road To OZ 2.0 conference in Park City, plus how the Senate’s recent budget vote may impact tax legislation and OZs in the coming weeks and months.

Join Jimmy the first Monday of every month at 3:00 PM Eastern Time, to get your Opportunity Zones questions answered live.

Featured OZ Questions On This Episode

• What forms are required for OZ tax filing and compliance?
• If the OZ program is extended, when would deferred taxes be due?
• How do you meet the substantial improvement requirement for OZ projects, especially in real estate conversions?
• What is the likelihood that the deferral date will get extended?

About The Opportunity Zones Podcast

Hosted by OpportunityDb 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.

• Subscribe on Apple Podcasts
• Subscribe on Spotify
• Watch on YouTube

Listen Now

Episode Summary

In this April 2025 episode of Opportunity Zones Office Hours, host Jimmy Atkinson discusses the upcoming “Yellow Brick Road to QOZ 2.0” conference in Park City, Utah, the latest updates on Opportunity Zone (OZ) legislation, and answers live questions from the audience. Jimmy provides insights into the potential extension of the OZ program, tax filing requirements, and practical considerations for OZ investors.

The Yellow Brick Road to OZ 2.0 Conference

Jimmy begins by discussing the much-anticipated “Yellow Brick Road to OZ 2.0” conference, taking place later this week at the Montage Deer Valley in Park City, Utah. The event, organized by the American Association for Opportunity Zones and co-hosted by Greenberg Traurig, is expected to be the largest non-Novogradac OZ conference in years.

The conference agenda includes:

• Day 1 (Thursday): Legislative policy introduction panel (with Jimmy as a speaker), QOF priorities, investor and family office panels, networking sessions, and an OZ Insiders dinner.
• Day 2 (Friday): Panels on community development, affordable housing, targeted industries, rural investments, and sports and entertainment development.
• Day 3 (Saturday): Additional programming and networking for attendees staying longer, including skiing opportunities.

The conference will feature notable speakers, including:

• Jimmy Atkinson, host of the podcast and OZ advocate
• Blake Christian, CPA and OZ Insiders member
• Michael “Harry-O” Harris, founder of Death Row Records and OZ investor
• Shay Hawkins and Jill Homan from the America First Policy Institute
• Coni Rathbone, OZ attorney and OZ Insiders member
• Jim Lang from Greenberg Traurig
• Representatives from Novogradac and other industry leaders

Jimmy will be podcasting live from the event and hosting an OZ Insiders dinner on Thursday night.

Legislative Update: Budget Resolution Battles

Jimmy shifts focus to recent legislative developments, emphasizing the potential impact on OZ policy. Over the weekend, the Senate passed its 2025 budget resolution after a lengthy vote, which differs significantly from the House version passed in February.

Key differences between the House and Senate budget resolutions:

• The Senate plan proposes $5.3 trillion in tax cuts over a decade, compared to the House’s $4.5 trillion.
• The Senate also seeks a $5 trillion debt ceiling increase, whereas the House proposed a $4 trillion increase.
• This discrepancy sets the stage for a potential battle within the Republican Party as they attempt to reconcile the differences.

Jimmy notes that if the House agrees to the Senate’s version, it will unlock the budget reconciliation process, allowing Congress to draft a comprehensive tax bill later in the year. If extended, the OZ program would likely be included, as it remains broadly supported and relatively low-cost compared to the total tax cut package.

Potential Outcomes for OZ Legislation

Jimmy discusses the likelihood of OZ legislation passing this year, estimating that there is a high probability (around 85%) given the current political alignment. However, there is also a chance that Congress could skip extending the current OZ program and focus on implementing an OZ 2.0 version starting January 1, 2027.

This approach could create a gap or “dead time” between the expiration of the current OZ program in 2026 and the start of the new one in 2027, potentially slowing down investments during that period. Jimmy speculates that if OZ 2.0 is confirmed, some investors might hold off on investments until the new rules take effect.

Tax Filing and Compliance for OZ Investors

Jimmy answers several audience questions about tax filing requirements for OZ investments:

• Form 8996: Required annually for Qualified Opportunity Funds (QOFs) to certify their status.
• Form 8997: Filed by investors to report investments in QOFs. This form includes details on initial investments, new investments, and any sales or disposals of QOF interests.
• Form 8949: Used for reporting capital gains.
• Form 4797: Sometimes necessary for reporting gains from business property sales.

Jimmy highlights a new FAQ section on OpportunityZones.com and an upcoming instructional video on how to complete Form 8997. He advises investors to seek professional tax assistance, as OZ compliance can be complex.

Practical Considerations for OZ Investors

During the Q&A, Jimmy addresses questions about using OZ funding for real estate conversion projects. He outlines how to structure OZ investments, emphasizing the 30-month substantial improvement requirement, which mandates doubling the basis of a building within 30 months of acquisition.

He also explains that OZ equity typically serves as part of the capital stack, often covering the down payment or equity portion, while traditional financing covers the rest. Jimmy advises leveraging local incentives or tax abatements that may complement OZ investments.

Key Audience Questions

• Likelihood of Extension: Jimmy reiterates that if tax legislation passes this year, OZ extensions are highly likely, given bipartisan support and the relatively low cost of maintaining the program.
• Deferred Tax Deadlines: If OZ legislation is extended, the deferred tax due date could move from 2026 to 2028, postponing tax payments to April 2029.
• Conversion Projects: OZ funds can finance conversions (e.g., converting a nursing home to apartments), as long as substantial improvement requirements are met.
• Financing Down Payments: OZ equity can be used as the down payment, with traditional loans covering the remainder.

Final Thoughts

Jimmy wraps up by reminding listeners of the Yellow Brick Road to OZ 2.0 conference and invites attendees to connect with him during the event. He remains optimistic about OZ legislation passing later this year, but cautions that the legislative process may take several months.