Navigating the Permanence of OZ 2.0
Shane Farthing & Associates provides municipal officials with the technical framework required to master the "One Big Beautiful Bill Act" (OBBBA).
Strategic Outlook
The shift from a temporary tax incentive to a permanent code fixture fundamentally alters municipal land use. We assist in auditing census tracts against the new 70% AMI threshold to secure multi-generational capital.
Shane Farthing & Associates
Legislative Pivot
The OBBBA introduces more than just extensions; it resets the rules for capital gains deployment and tract eligibility.
Strategy Modules
Program Status
Legacy Framework (OZ 1.0)
Set to expire Dec 31, 2026
OBBBA Framework (OZ 2.0)
Permanent tax code fixture
Tactical Advantage: Enables consistent, long-term capital stack planning for major infrastructure projects that span decades rather than years.
Timeline of Re-Designation
Strategic milestones for the 2026 re-mapping cycle.
Legislative Enactment
The OBBBA becomes law. Municipalities must evaluate current census tract eligibility against the new 70% AMI threshold immediately.
Rural Incentive Advantage
Under the new framework, Qualified Rural Opportunity Zones receive distinct statutory benefits designed to drive capital into populations under 50,000.
Basis Step-Up Differential
Rural tracts offer a 3x higher step-up in basis compared to standard urban tracts under OBBBA Section 402.
Improvement Threshold Comparison
The lowering of the improvement threshold reduces the capital barrier for adaptive reuse in rural communities.