Opportunity Zone Basics in Oregon
Oregon Residents can potentially make a positive impact in Opportunity Zones across the country.
What is an Opportunity Zone?
"Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States. Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors. Opportunity Zones were created under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97)" -irs.gov
Why do Opportunity Zones Matter to Investors?
Investors can realize tax benefits by investing capital gains into Qualified Opportunity Funds (QOFs), which in turn invest in businesses or real estate projects located in Opportunity Zones. The tax incentives include deferral of capital gains taxes, in some cases a reduction in the amount of taxable capital gains, and potential elimination of capital gains taxes on the appreciation of the investment if certain conditions are met.
Most QOZs require investors to be accredited investors. Find out if you are accredited here.
Investors should also be aware that QOF investments are illiquid and involve project risk. Minimum commitments are usually 5‑ or 6‑figures. There are no guaranteed returns, success depends on the underlying real estate or business.
Accordingly, OZ investments are generally suitable only for those who meet all legal and financial requirements, and who have patience for long holds. Working with qualified advisors (tax professionals, attorneys, investment managers) is essential. Our team can help accredited investors evaluate OZ funds, perform due diligence on sponsors, and integrate OZ strategies into a diversified plan. (We do not manage securities directly; rather, we assist clients in choosing pre‑existing QOFs and structuring their investments.)
Opportunity Zones in Oregon
As of 2025 there are 86 Opportunity Zones in Oregon including 5 in the Springfield and Eugene community. This means that if you make qualified investments in parts of Bethel, Downtown Eugene, Downtown Springfield, Glenwood, and some U of O/EWEB property you can potentially take advantage of the tax benefits. Local developers and investors in Eugene and Springfield may use OZ funds for projects in our five eligible zones.
See a full list of all Opportunity Zones in Oregon on the states website here. *2025 update: this current OZ map will remain through Dec 31, 2028 (overlapping two years with the new designations).
2025 One Big Beautiful Bill Act Updates
The OBBBA, Public Law 119-21) makes the OZ program permanent with key modifications.
Key changes:
-
Governors will now re-designate zones every 10 years, starting July 1, 2026 (with new OZs effective Jan 1, 2027).
-
Stricter eligibility will likely shrink the map significantly and Oregon will loose about 36% of it's zones (Economic Innovation Group).
-
Tax benefits revised – Original OZ benefits are largely retained but simplified. New investments made after Dec 31, 2026 will get a 5-year deferral of the original gain (measured from the date of investment). A 10% basis step-up is granted at 5 years (no change), but the 15% step-up at 7 years is eliminated. Crucially, all gains on OZ property held ≥10 years remain tax-free, and for assets held beyond 30 years, the basis is frozen at its fair-market value at year 30.
-
Rural incentives – A new category, Qualified Rural Opportunity Funds (QROFs), targets small communities (<50,000 population, no large adjacent city).. Rural OZ projects get enhanced benefits: a 30% basis step-up after 5 years (instead of 10%), and the “substantial improvement” test is halved (50% of cost vs. 100%).
-
Reporting & compliance – For the first time OZ law mandates detailed reporting. QOFs and OZ businesses (QOZBs) must disclose assets, employees, housing units, etc.
How T. Mann Financial can help you invest in Opportunity Zones
T. Mann Financial in Springfield Oregon can help you select and invest in Opportunity Zones today!
T. Mann Financial's 3-Step QOZ Process
1. Determine Suitability
Once a capital gain event has been identified we have a conversation with our clients to determine if a qualified opportunity zone investment is suitable for their specific situation. We discuss their risk tolerance, time horizon, goals, tax situation, access to cash in the case of an emergency, etc.
2. Select one or more QOZs
T. Mann Financial works with our compliance team to identify multiple options and then work with our clients to select a combination that would best meet their individual needs.
3. Integrate QOZs into the larger Portfolio
Risks Associated with Opportunity Zones
While QOZs can be a great opportunity for investors, any one or more QOZ should never compose more than a small fraction of your total portfolio as these investments are considered high risk by the SEC.
Example QOZ Investment
Imagine a wealthy investor named Duck from Eugene Oregon just sold an apartment complex that he has owned for many years. Duck shared his concerns with T. Mann Financial about the fact he has been depreciating that asset and will incur a large capital gain as a result of the sale. He doesn't have the cash to pay for the capital gains tax now but will in a few years.
After a conversation with T. Mann Financial it is determined that Duck is a suitable candidate for a QOZ investment.
T. Mann Financial then presents multiple Qualified Opportunity Zone funds and together they select and invest in two of them.
In this scenario, Duck would have been able to defer those capital gains for 5 years and potentially recieve a 10% step-up in basis if he holds them for greater than 5 years under the new OZ 2.0 rules.
Educational Info & Disclaimers
Opportunity Zone tax law is complex and rapidly evolving. This summary is educational only and not tax or legal advice. It is based on current federal law (including OBBBA) and publicly available guidance. We strive for accuracy, but neither the state nor our firm guarantees completeness. All readers should consult a qualified tax advisor or attorney before making any OZ investment. As Oregon’s own business program cautions, information “is for public education” and should not be used as the basis of any decision without professional advice (oregon.gov). Investment of capital gains in an Opportunity Fund is subject to strict IRS rules (see IRS Form 8996 instructions) and state treatment may vary. Changes in regulations or tax law can alter outcomes. We encourage due diligence: review official IRS/QOZ regulations, consider state tax implications, and confirm that any fund meets the new OZ rules (especially the 90% asset test and active business criteria). By framing these facts, we aim to keep you informed of the evolving OZ landscape, but ultimate responsibility lies with the investor.