Are Opportunity Zones still in effect in 2025?

Yes! Opportunity Zones are still in effect in 2025, and investors can still enjoy the biggest tax advantages they offer. Under the current rules, if you trigger capital gains any time prior to the end of 2026, you can invest those gains into a Qualified Opportunity Fund (QOF) and receive OZ tax benefits. Although certain earlier incentives related to partial basis step-ups have expired, the biggest benefits (namely, tax-free appreciation for 10-year holds) still exist for new investments through year-end 2026.

Key Deadlines and Remaining Benefits

While the clock is ticking toward December 31, 2026—the date when deferred gains must generally be recognized—the opportunity to defer taxes on newly realized capital gains remains in play as long as you meet the 180-day reinvestment window. Notably, this 180-day deadline would push into 2027 for some investors. For example, the deadline to invest a gain triggered on December 31, 2026 would be June 28, 2027. Gains recognized on partnership Schedules K-1 have even more time, as these gains can elect to use March 15th of the following year as the starting date for the 180-day clock. The deadline to invest partnership gains triggered in 2026 therefore is September 10, 2027.

It’s true that some ancillary OZ perks, such as the incremental basis increases of 10 and 15 percent, are no longer available to those who missed earlier deadlines. Yet the capacity to potentially avoid taxes on the appreciation of any new OZ investment—continues to draw attention from fund managers, developers, and individuals looking for both financial returns and community impact.

Conclusion

Are Opportunity Zones still in effect? Yes, Opportunity Zones remain an active and effective strategy in 2025, 2026, and even into 2027 for those with capital gains to invest. By placing your realized gains into a QOF within 180 days of a transaction that produces gains, you can defer taxes until the earlier of when you exit the investment or the end of 2026. Beyond that date, the greatest incentive stands for those willing to hold their investments for a decade or more, as any growth in the OZ project may be tax-free upon sale.

In short, the landscape has changed since Opportunity Zones launched—some early incentives have sunset, and new legislative proposals may yet alter the program’s details—but the primary advantages persist. For investors with patience and a focus on longer-term objectives, Opportunity Zones still hold significant appeal as a vehicle to both defer current capital gains taxes and potentially eliminate future tax liability on the investment’s appreciation.