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Three Ways QOZBs Can Fund Projects Before the 2026 Sunset

Opportunity Zones Set to Sunset in 2026: What QOZBs Can Do to Fund Projects Now

The Opportunity Zones (OZ) program, created under the Tax Cuts and Jobs Act of 2017, has served as a powerful tool to drive long-term investments into economically distressed communities across the United States. Through the formation of Qualified Opportunity Funds (QOFs), investors can reinvest capital gains into designated Opportunity Zones and, in return, receive substantial tax benefits, including deferrals and exclusions, if certain holding period requirements are met.

However, the clock is ticking. The key tax deferral benefit under the OZ program is currently scheduled to expire on December 31, 2026. The Big Beautiful Bill (H.R.1) did not include a general extension as many QOF and QOZBs had hoped.  Instead, a new set of OZ regulations will go into effect on January 1, 2027 if the current version of the bill is passed.  As this sunset date approaches, many Qualified Opportunity Zone Businesses (QOZBs) are seeking to accelerate their fundraising and development timelines.  We have represented QOZBs and QOFs for many years under the current regulations.

The urgency to fund existing QOZBs has reached new heights, which means many QOZBs are revising their offerings to make them more attractive to QOFs.  Here are three effective strategies QOZB’s can use right now to secure the capital they need before the window closes.

Understanding the Regulatory Timeline

Under current law, investors who realize capital gains can defer paying taxes on those gains by reinvesting in a QOF within 180 days. The deferral lasts until the end of 2026, at which point the deferred gain becomes taxable, even if the investment in the QOF continues.  (The proposed legislation allows for cap gain investors after January 1, 2027 to defer capital gains until 2033 and a 10% stepped up basis if invested in a QOZB and a 30% stepped up basis if invested in a Rural QOZB).

Investors who hold their investment in a QOF for at least 10 years are still eligible for permanent exclusion of additional gains accrued from the Opportunity Zone investment.   However, the QOZB map will change under the proposed legislation.  QOZB projects that will be phased out can still take investments from QOFs up to December 31, 2026 under the current regulations.  All QOF investments placed before that date will still benefit from the zero cap gains accrued.

As a result, 2025 and 2026 represent a crucial fundraising period for QOZBs seeking to attract investors while the program’s tax advantages remain in play.

Three Ways QOZBs Can Fund Projects Before the 2026 Deadline

1. Leverage OZlistings.com to Market Your Project

One of the most immediate steps a QOZB can take is to list and promote their project on OZlistings.com, a dedicated Opportunity Zone marketplace. This platform is designed specifically to connect QOZBs with QOFs and active OZ investors who are seeking projects that align with their investment goals.  It is not a fundraising platform, but it is an OZ dedicated marketing platform that markets the QOZB or QOF seeking to connect with investors.

By using OZlistings.com, QOZBs can increase visibility, generate leads, and present their business opportunity in a standardized and investor-friendly format. The platform is a valuable marketing tool for project sponsors who need to accelerate their fundraising timelines.

2. Pitch Your Project at OZ Pitch Day with OpportunityZones.com

Another high-impact way to reach active Opportunity Zone investors is through OpportunityZones.com and Jimmy Atkinson’s OZ Pitch Day. This virtual event occurs multiple times per year and brings together a large audience of accredited investors, fund managers, and project sponsors.

By participating in OZ Pitch Day, QOZBs can present their projects directly to potential QOF investors in a live format that fosters real-time engagement and follow-up opportunities. It’s an ideal platform for QOZBs that have a compelling story, solid financials, and are ready to raise capital.

3. Engage a FINRA-Licensed Broker-Dealer to Raise Capital

For QOZBs looking to raise substantial capital, working with a registered broker-dealer licensed under FINRA can be a game-changer. Broker-dealers have the regulatory authority and investor networks to structure offerings, promote them to high-net-worth individuals and institutional investors, and ensure compliance with securities laws.

Broker-dealers often work on a success-based compensation model and bring valuable expertise in deal structuring, investor relations, and due diligence critical factors in helping QOZBs close funding rounds efficiently before the 2026 deadline.  Fundraising for a QOZB is incredibly difficult if the QZOB does not have the existing relationships with investors that routinely encounter capital gains.  Several registered broker dealers have divisions that work specifically in tax mitigation investments.

Conclusion

With the OZ program’s capital gains deferral benefit set to expire on December 31, 2026, time is of the essence for Qualified Opportunity Zone Businesses to secure investor commitments. Platforms like OZlistings.com, events like OpportunityZones.Com OZ Pitch Day, and partnerships with FINRA-registered broker-dealers offer powerful paths to raise capital and ensure project success.

As the end of the program approaches, proactive outreach, transparent communication, and professional fundraising strategies will distinguish the QOZBs that thrive from those that stall.

Lucosky Brookman represents several QOZBs and QOFs across the country.  If you are a QOZB, QOF or looking for guidance to form your QOZB or QOF please reach out to our Opportunity Zone team today.