Opportunity Zone Investments: What the 2025 Extension Means for Real Estate
Congressional action extends OZ benefits and expands eligible improvements
Sterling & Ghold's team of experienced practitioners brings decades of specialized expertise to every matter, combining deep industry knowledge with practical commercial judgment. Our lawyers work seamlessly across offices and practice groups to deliver integrated advice that addresses the full scope of our clients' objectives.
The Opportunity Zone program, which provides significant capital gains tax deferral and potential exclusion benefits for qualifying investments in designated low-income census tracts, has been extended and expanded by recent legislation. Real estate investors who participated in the original program cohort should review their investments in light of the new rules and consider whether additional improvements qualify for the substantially improved property standard under the extension.
Sterling & Ghold's team of experienced practitioners brings decades of specialized expertise to every matter, combining deep industry knowledge with practical commercial judgment. Our lawyers work seamlessly across offices and practice groups to deliver integrated advice that addresses the full scope of our clients' objectives.
New developments under the extension include expanded eligible improvement definitions for commercial real estate, a new special rule for affordable housing projects, and simplified substantiation requirements for qualifying business property. Investors with existing QOF positions should consult with counsel to confirm continued compliance and identify planning opportunities before key dates.
