Developers Launch $1.3 Billion Opportunity Zone 2.0 Funds as Advisors Pitch 30% Rural Tax Break
Updated
Updated · Wealth Management · Aug 10
Developers Launch $1.3 Billion Opportunity Zone 2.0 Funds as Advisors Pitch 30% Rural Tax Break
2 articles · Updated · Wealth Management · Aug 10
Summary
Peakline opened a fourth Opportunity Zone fund targeting $1.3 billion in equity before final tract nominations are set, with capital deployment planned for January 2027 when OZ 2.0 takes effect.
New IRS guidance lets investors defer second-half 2026 capital gains through a 180-day lookback, while the revamped program adds a permanent structure, five-year rolling deferral and an automatic 10% tax reduction after five years.
Advisors at firms including SAX, which oversees about $5 billion, said client interest is rising again as upcoming liquidity events can be steered into OZ 2.0 after demand faded under the original program's sunset risk.
Rural zones are drawing particular attention because OZ 2.0 offers a 30% reduction in deferred tax amounts there, above the original program's maximum 15% step-up after seven years.
State governors began a 90-day nomination window on July 1, and the new program follows OZ 1.0, which drew $112 billion by 2024 but was criticized for steering capital toward less-distressed areas.