Opportunity Zones have revolutionized how individuals and businesses reinvest capital gains into underserved communities. As a permanent tax incentive program, it provides significant benefits like deferral, reduction, and exclusion of capital gains taxes. The Sherbert Group partners with sponsors and investors to demystify and maximize these opportunities through expert guidance on Qualified Opportunity Funds (QOFs) and Qualified Opportunity Zone Property (QOZ Property).

Our Expertise in Opportunity Zones Since Inception

First enacted in 2017 as part of the Tax Cuts and Jobs Act, Opportunity Zones quickly gained traction. Tara Sherbert and her team collaborated with Federal Reserve Bank representatives to deliver informational sessions across the Southeast, educating stakeholders on this innovative economic development tool.

Key Changes from the OBBBA

Following the passage of the One Big Beautiful Bill Act (OBBBA) in 2025, Opportunity Zones became permanent with enhanced rules. Most updates take effect in 2027, including three core benefits (which we refer to as “buckets”) for eligible investments:

• Bucket 1 – Tax Deferral: Capital gains invested in a Qualified Opportunity Fund under OZ rules can be deferred for up to five years, providing short-term tax relief and flexibility for reinvestment.
• Bucket 2 – Capital Gains Reduction: Holding the qualified investment for at least five years excludes 10% of the original deferred gain from taxation, reducing your overall tax liability.
• Bucket 3 – Appreciation Exclusion: If held for at least ten years, any appreciation on the new investment may become completely tax-free, enabling long-term wealth building.

These incentives apply to investments in low-income census tracts designated as Opportunity Zones, promoting economic growth in distressed areas.

Who Can Benefit from Opportunity Zone Investments?

Any U.S. taxpayer with capital gains—including from stocks, real estate, or business sales—can leverage this program. Common beneficiaries include:

• Individuals or corporations seeking to defer and reduce taxes by reinvesting gains into QOFs.
• Real estate developers and startups in designated census tracts looking for capital to fuel growth.
• Real estate sponsors, syndicators, or private equity funds aiming to establish QOFs and invest in QOZ Property, such as corporations, partnerships, or direct real estate holdings.

By partnering with an experienced team, this legislation drives transformative redevelopment in low-income communities nationwide, fostering job creation and infrastructure improvements.

Why Choose The Sherbert Group for Your Opportunity Zone Strategy?

With over 30 years of experience in tax planning and investment structuring, The Sherbert Group is uniquely equipped to ensure your Opportunity Zone deals are properly structured, funded, and managed. Contact us today to explore how we can tailor an OZ investment plan to your goals.

For more information about investing in Opportunity Zones, email us at opportunity@sherbertgroup.com.