IRS Issues Revenue Procedure for Qualified Opportunity Zones Nomination Effective January 2027

The IRS issued revenue procedures providing guidance to state chief executive officers on procedures for nominating population census tracts to be designated as qualified opportunity zones effective Jan. 1, 2027, following amendments made by the One Big Beautiful Bill Act. The revenue procedure establishes a narrower definition of low-income communities based on median family income and poverty rates, eliminates the contiguous tract rule, and applies a 25 percent limitation on the number of QOZs per state for each designation period. State CEOs may nominate eligible census tracts during a 90-day determination period beginning July 1, 2026, with possible 30-day extensions. ...