This is educational content. Not investment, tax, or legal advice. Work with an adviser for personalized guidance.
The Tax Cuts and Jobs Act (2017) introduced Opportunity Zones and Qualified Opportunity Funds (OZ 1.0).
The origin story is fascinating and bizarre.
Although the program is a natural fit to help investors diversify away from single-stock risk, advisers tell me they allocate sparingly, and only if the investment makes sense without the tax benefits. I'm excited to discuss this in a future episode of The Albatross.
But today, I'm interested in how the states will treat Qualified Opportunity Funds in 2027 (OZ 2.0).
Since 2017, many states, though far from all, have either let the benefits lapse or legislated them away.