The OBBBA also permanently extends and updates the qualified opportunity zone (“QOZ”) program, which had previously been set to expire for new investments made after December 31, 2026. Qualified Opportunity ZonesThe QOZ program, enacted under the TCJA, aims to boost long-term investment in economically distressed and low-income areas by deferring, and in some cases permanently excluding from income, certain capital gains invested in a qualified opportunity fund within a 180-day window. Previously, so called “qualified opportunity zone business property” needed to be acquired after December 31, 2017, but before December 31, 2026; now the required acquisition date will reset with each new 10-year cycle. This results in all QOZ investments that are held for at least 5 years having a 10% basis increase (30% for certain rural investments as described below). The special designation for low-income communities in Puerto Rico is also repealed, effective as of December 31, 2026.