The chances are almost zero. The zones are the zones. A few more have been added by subsequent legislation, but there's basically no realistic shot that any zone designations get revoked.
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Could a QOZ have its status revoked in the future?
I know OZs are based on Census tracts. Could they change in the future as new Census information is collected?
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That would be horrible, so no.
No. If it is a designated zone when you enter the program, it remains a qualified zone even if the tract improves while you are invested but before you sell.
Possible, but highly improbable, overturning such a massive piece of legislation is almost never accomplished, especially when it has bipartisan support.
Nope. The zones were fixed when the IRS issued Notice 2018-48.
Opportunity Zones under the current code provision are now locked in, and they will not change on account of the 2020 Census.
According to the OZ legislation, current Opportunity Zone designations remain in effect until the end of 2028, and benefits for investment in those zones extend until the end of 2047. New census results in 2020 will not affect the current designations. 26 USC 1400Z-1: "A designation as a qualified opportunity zone shall remain in effect for the period beginning on the date of the designation and ending at the close of the 10th calendar year beginning on or after such date of designation."
Anything is possible, but I believe that revoking QOZ status would require Congress changing the law. I think QOZ designation is safe.
The IRS has said that taxpayers can rely on the designations, even if they are incorrect and there is no ability under current law to add new Opportunity Zones in the future.
The zones are set for the forseeable future. I suppose they could change after a future census but there is at least a 10-year lock on the zones we have. Investors should feel comfortable that they are locked down and that they will get promised tax incentives by investing in such areas through a Qualified Opportunity Fund.
There are no indicators as to if or when an Opportunity Zone could have its status revoked, other than the fact all of the QOZ designations expire, as a matter of law, on Dec. 31, 2028.
Opportunity Zones were established under the Tax Cuts and Jobs Act of 2017. Tracts were designated by the states, all of which were certified in June 2018. The designation process is complete and there is no legal mechanism for previously designated tracts to be removed or for new tracts to be designated at this time.
The designation is for 10 years. The expiration of the designation will not disqualify an investment held for longer. This is important since the regulations extended the opportunity to elect for the 10-year hold exclusion long past the 10-year mark.
This seems unlikely. Since the investment opportunity effectively ends in 2026, I don't expect the Fed would change anything along those lines prior to then.
If a census tract was designated as a QOZ, this status will remain intact through the program expiration in Dec. 31, 2026, and throughout the timeline to recognized the 10-plus-year step-up in basis through 2047.
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