You have a capital gain.
OZ 2.0 can turn the tax bill into your next investment.

California's draft Opportunity Zone 2.0 list rejects roughly three-quarters of the 27 census tracts Kern County recommended, excluding downtown Bakersfield and other urban areas that local leaders had prioritized. The state instead proposes 20 Kern tracts — 13 of which were never recommended locally — leaving stakeholders dismayed at the mismatch between county priorities and Sacramento's data-driven selections. The episode is an early look at the power dynamics of OZ 2.0: counties recommend, but governors decide, and California's draft signals the state is optimizing to its own criteria over local wish lists ahead of the September federal deadline.

Commercial Observer reports New York State has roughly 1,702 census tracts qualifying under OZ 2.0's tightened income and poverty thresholds, of which Governor Kathy Hochul's office can nominate no more than 426 for designation effective January 1, 2027. The piece urges local governments and stakeholders to engage Empire State Development and the Regional Economic Development Councils now rather than waiting for the late-September federal deadline, noting this round emphasizes strategic, data-driven tract selection over the 2018 process. New York's picks — especially in the five boroughs — will be among the most consequential of the cycle for institutional OZ capital.

In the first outright rejection of the OZ 2.0 cycle we've tracked, Camden County, Missouri commissioners declined to recommend a Lake of the Ozarks-area tract for Opportunity Zone status after overflow crowds — more than 100 residents — turned out fearing the designation would enable a large data-center development sought by Mo Lake Development. The backlash spread: Camdenton's Board of Aldermen rescinded its earlier letter of support and passed a 12-month data-center moratorium, State Rep. Jeff Vernetti withdrew his backing, and the developer ultimately ended its annexation agreement with the city. A reminder that OZ designations are locally contested — and that data-center opposition is becoming a real constraint on where OZ capital can land.