On September 11, the U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) published a notice of proposed rulemaking and a notice of public hearing on information reporting requirements for qualified opportunity zones (OZs) as well as updated qualified opportunity fund (QOF) procedures for certification and decertification.
Read the notice HERE.
Background
The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, permanently extended, reshaped, and updated the OZ initiative. It imposed more stringent reporting requirements, amid concerns over lack of investment transparency, as well as added new tax benefits for projects in rural communities,
Proposed Rule
The notice would implement new statutory requirements for QOFs to file information returns with the IRS. Under the proposed standards, QOFs would have to file annual information returns with the IRS and provide certain investor statements, while Qualified Opportunity Zone Businesses (QOZBs) would be required to furnish data to support that reporting. The proposed requirements would clarify the applicability of penalties for the failure to file or furnish information returns and statements.
The notice also clarifies how QOFs are certified and monitored. While self-certification is still in place, the proposed regulations clarify the self-certification process and create a formal mechanism for funds to revoke their certification if they never received qualifying investments, as well as to voluntary decertify when they longer want to operate as QOF.
Opportunity Zone 2.0 Status
States are currently in the process of determining where to designate the OZs. The 90-day designation window opened on July 1, 2026, and runs through September 28, 2026. During this window, every state governor is submitting their nominations to Treasury.
Next Steps
Comments are due October 26 and a public hearing by phone is scheduled for 10 a.m. ET November 5 to discuss the proposed regulation.
Submit Comments HERE.
Additional Resources
NADO Opportunity Zone Resource Guide