What are Opportunity Zones? A Complete Guide for 2025

Opportunity Zones (OZs) are designated economically distressed areas in the United States where new investments, under certain conditions, may be eligible for preferential tax treatment. Established by the Tax Cuts and Jobs Act of 2017, the primary goal of OZs is to spur economic development and job creation in low-income communities by incentivizing long-term investments.

Understanding Opportunity Zones

OZs are census tracts nominated by state governors and certified by the U.S. Department of the Treasury. As of 2025, there are over 8,700 designated OZs across all 50 states, the District of Columbia, and five U.S. territories . These zones are characterized by higher poverty rates and lower median incomes compared to surrounding areas.

How Do Opportunity Zones Work?

Investors can participate in OZs by investing capital gains into Qualified Opportunity Funds (QOFs). These funds are investment vehicles organized for the purpose of investing in eligible property located within OZs. The investments can be in real estate projects, businesses, or infrastructure developments.

To qualify for the tax benefits, investors must reinvest their capital gains into a QOF within 180 days of the sale of the asset generating the gain. The QOF must then invest at least 90% of its assets in qualified OZ property.

Tax Benefits of Investing in Opportunity Zones

Investing in OZs offers several tax incentives: 

1. Capital Gains Deferral: Investors can defer taxes on prior capital gains invested in a QOF until the earlier of the date the investment is sold or exchanged, or December 31, 2026. 
2. Step-Up in Basis: For investments held for at least five years, investors receive a 10% exclusion of the deferred gain. However, this benefit expired after December 31, 2021, for new investments.  
3. Exclusion of Gains from QOF Investments: If the investment in the QOF is held for at least 10 years, investors are eligible for an increase in basis to the fair market value of the investment on the date it is sold, effectively eliminating capital gains taxes on the appreciation of the investment.

Legislative Updates and Future Outlook

The OZ program is currently set to expire on December 31, 2026. However, there is ongoing discussion in Congress about extending the program. The Opportunity Zones Transparency, Extension, and Improvement Act (H.R. 5761) has been introduced, proposing to extend the deferral period to 2028 and reinstate certain benefits.

With the current administration showing support for OZs, there is optimism about potential extensions and improvements to the program. Investors should stay informed about legislative developments to maximize the benefits of their investments.

Impact on Communities

Since their inception, OZs have attracted significant private capital to underserved communities. Investments have funded affordable housing, commercial developments, and infrastructure projects, contributing to economic revitalization. 

For example, Erie, Pennsylvania, leveraged OZ investments to revitalize its downtown area, resulting in over $100 million in new investments and the creation of jobs and housing.

Utilizing Opportunity Zone Maps

Investors can identify OZs using interactive maps provided by various platforms. These maps offer detailed information about the location and characteristics of each zone, aiding in investment decisions. This map of opportunity zones includes official data from The U.S. Department of Housing and Urban Development (HUD): Interactive map

How Atlas Supports Opportunity Zone Investments

While the tax incentives and regulatory framework of Opportunity Zones (OZs) are well-defined, identifying viable projects and tracking their impact requires precision, transparency, and the right technology. This is where Atlas becomes a game-changer.

Atlas is a browser-based geographic information system (GIS) that helps cities, developers, and investors make smarter decisions through maps, data, and real-time insights. In the context of OZs, it transforms complex layers of spatial data into actionable insights — connecting capital with communities that need it most.

Finding the Right Opportunity Zone

Identifying where to invest is the first step. Atlas makes that process intuitive.

With Atlas, users can:

• View live, interactive Opportunity Zone boundaries across the U.S.
• Layer OZ maps with property boundaries, zoning rules, vacant lots, and development pipelines
• Filter by factors like demographics, infrastructure, land use, and tax lot data
• Zoom into block-level views to find underutilized parcels ready for development

This gives investors an edge in locating OZs that are not just eligible — but ripe for impact and growth.

Mapping Development Potential

Not all OZs are equal. Some are in downtown areas already experiencing growth. Others are more speculative.

Atlas helps teams:

• Compare Opportunity Zones by land value trends, housing vacancy rates, and transportation access
• Visualize local government plans (e.g., capital improvement projects, rezoning)
• Identify public assets and underused lots that can be repositioned

For example, a developer could use Atlas to find parcels in an OZ near a planned transit upgrade, then quickly review zoning allowances and overlay public incentives like tax abatements.

Planning and Designing OZ Projects

Once a site is selected, the real work begins: design, community engagement, and compliance.

Atlas streamlines this with:

• Overlay tools to show zoning, setbacks, FAR limits, and density calculations
• Collaboration features to share maps with teams, city officials, or consultants
• Exportable reports to present to planning boards, investors, or grant committees

Instead of jumping between PDFs, spreadsheets, and GIS software, project teams use one live, interactive platform that keeps everything in one place — and accessible from a browser.

Tracking Capital Projects in Real Time

For local governments managing OZ-related infrastructure or public-private partnerships, Atlas acts as a capital improvement tracker.

Cities can:

• Publish maps of in-progress, planned, and completed OZ projects
• Tag investments by funding source (e.g., ARPA, general funds, QOFs)
• Track timelines, budgets, and project leads in one place
• Share public-facing versions with residents and stakeholders

This fosters accountability and builds public trust — both essential for long-term community impact.

Community Engagement and Transparency

OZs have faced criticism for potentially displacing residents or lacking transparency. Atlas helps address this by visualizing impact in real time.

City staff or community leaders can:

• Highlight OZ investments and what they’re delivering (housing units, jobs, amenities)
• Create public dashboards to show project progress and public benefits
• Let residents explore OZ investments in their neighborhood

This approach shifts OZs from opaque financial tools to community-driven development instruments — where residents have access and input.

Use Cases in the Field

1. Mid-Sized City Redevelopment

A mid-sized city in the Midwest used Atlas to target three adjacent OZ tracts near a long-abandoned industrial corridor. By layering data on soil conditions, infrastructure access, and land ownership, the city assembled parcels for a $40M mixed-use redevelopment. Atlas helped the city secure federal grants and QOF partners by showing clear maps and timelines.

2. Real Estate Fund Acquisition

A real estate investment fund specializing in workforce housing used Atlas to quickly evaluate over 50 OZ properties across the Sunbelt. Instead of relying on outdated datasets, they used Atlas’s live tax data, zoning overlays, and comp tools to shortlist sites that matched both eligibility and yield goals.

3. Transparency Portal for Residents

A local government in California launched a public-facing Atlas dashboard showing all OZ investments made since 2018. Each project pin opens with photos, investment amounts, projected job counts, and partners involved. This has increased public confidence and countered narratives of displacement.

Bridging Capital and Community

The original vision for Opportunity Zones was to bring long-term, patient capital to places left behind. But the mechanics of doing that — from finding the right parcel to proving impact — can be complex.

Atlas reduces friction at every step:

• It helps investors deploy capital faster
• It helps cities steer investments toward equitable goals
• It keeps communities informed, engaged, and empowered

By combining maps, data, and collaboration into a simple online tool, Atlas turns OZ potential into real-world progress.

Why Atlas and Opportunity Zones Fit Together

Opportunity Zones are a once-in-a-generation policy experiment. They’ve unlocked billions in investment — but without the right tools, that capital can miss its mark.

Atlas ensures that OZ investments are smarter, faster, and more accountable.

Want to see how your city or team could use Atlas for OZ work? Let’s chat.