2025 Legislation Extends Qualified Opportunity Zones for Tax Planning

The One Big Beautiful Bill Act, passed in 2025, extends and modifies the Qualified Opportunity Zones (QOZ) program beyond its original 2026 sunset. Under the new rules, business owners who reinvest capital gains into a Qualified Opportunity Fund (QOF) after Dec. 31, 2026 can defer taxes, receive a partial reduction of the deferred gain after five years, and potentially eliminate capital‑gains tax if the investment is held for ten years.

Fifth Third Private Bank outlines that the strategy can help owners facing large liquidity events preserve wealth, but it requires long‑term commitment and coordination with tax and financial advisors to manage liquidity and compliance.