Will The Senate Make Opportunity Zones Permanent?

The U.S. Senate has released draft legislation that could make Opportunity Zones a permanent part of the tax code. In this special OZ NewsHour edition of the podcast, Jimmy Atkinson and Andy Hagans break down what’s in the Senate’s proposal, how it compares to the House version, and what it could mean for investors, fund managers, and the future of OZ policy.

Plus, a recap of the Capital Square event in Richmond VA earlier this month.

About OZ NewsHour

OZ NewsHour covers the key stories happening right now in the world of Opportunity Zones. Hosts Andy Hagans and Jimmy Atkinson discuss the powerful trends that investors, fund managers, real estate developers, and industry professionals need to know. If it’s a must-know development in the Opportunity Zone world, we cover it here.

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Episode Summary

In this special OZ NewsHour edition of The Opportunity Zones Podcast, Jimmy Atkinson and Andy Hagans react to breaking news out of Washington: the U.S. Senate Finance Committee has released draft legislative text that would make the Opportunity Zones program permanent.

Jimmy and Andy walk through the key provisions of the Senate’s proposal, discuss how it compares to the House version, and explore what it could mean for fund managers, investors, and the future of the OZ incentive. They also share their takeaways from several recent industry events and offer a preview of what’s coming up next for OZ Insiders.

Key Provisions in the Senate Draft

  • Permanent program structure: The bill proposes reauthorizing the OZ program on a rolling 10-year basis, with new zones designated starting in 2027.
  • Rolling basis step-up: Instead of a flat 10% step-up after five years, investors would receive annual increases—1% per year in years 1 through 3, and 2% per year in years 4 and 5—for a total step-up of 10% by year six.
  • Impact reporting requirements: The Senate draft includes enhanced transparency and data collection mandates.
  • Rural incentives: The Senate takes a softer approach than the House version, encouraging—but not mandating—a rural focus by offering additional benefits for projects with 90% of their assets in qualifying rural areas.

Jimmy and Andy emphasize that, while the Senate version is still in draft form, the introduction of legislative text marks a significant turning point and opens the door for real reform.

Event Recaps & Industry Momentum

Jimmy and Andy reflect on recent events that underscore growing enthusiasm in the OZ ecosystem:

  • OZ Pitch Day (June 19): Featured live pitches from top OZ sponsors, as well as expert commentary on the pending legislation.
  • Capital Square Summit (Richmond, VA): A successful in-person event with developers, investors, and policymakers.
  • Manhattan Beach Dinner: A private OZ Insiders gathering featuring deep discussions around deal flow and legislative momentum.

Each event reflected a strong appetite for both education and collaboration within the OZ community.

Los Angeles Lakers Sale & Capital Gains Tie-In

The conversation also touches on the Buss family’s reported sale of their stake in the Los Angeles Lakers in a deal valuing the team at $10 billion. Could some of that gain flow into OZ funds? Jimmy and Andy briefly explore how large liquidity events like this highlight the continued relevance of the Opportunity Zone incentive for ultra-high-net-worth investors.

Conclusion

With legislative text now circulating and bipartisan conversations accelerating, the OZ industry may be on the cusp of long-term certainty. Jimmy and Andy break down what this moment means—and why sponsors, investors, and advisors should be paying close attention.