Navigating the Opportunity Zone Transition: What IRS Notice 2026-40 Means for Investors and Developers

The Opportunity Zone (OZ) program is changing and the window to act under the existing rules is closing fast. IRS Notice 2026-40, issued in response to the One Big Beautiful Budget Act (OBBBA), gives investors, developers and fund managers the clearest picture yet of how the program evolves as the 2026 inclusion event approaches and a new compliance regime takes effect in 2027.

Join Cherry Bekaert's OZ professionals for a practical breakdown of what this guidance means for your investments. We'll cover the 2026 inclusion event and its impact on existing Qualified Opportunity Fund (QOF) positions, updated working capital safe harbor thresholds, the expanded 30% basis step-up available to rural opportunity funds, and how structuring decisions change under the post-2026 framework. Walk away knowing exactly what to do — and what to watch — before the rules shift.

By the end of this session, participants will be able to: 

• Describe the key provisions of IRS Notice 2026-40 and how they impact OZ investments 
• Distinguish between the current OZ framework and the post-2026 rules established under OBBBA, including revised deferral mechanics and qualification standards 
• Explain how the 2026 inclusion event affects existing QOF investments
• Evaluate how transitional rules impact project structuring decisions, including development, expansion and capital planning
• Compare standard and rural opportunity fund basis step-up thresholds and identify which investments qualify under each track
  

Who Should Attend

Built for real estate developers, investors, fund managers and tax or finance professionals navigating OZ investments or evaluating new opportunities under the evolving framework.

CPE Accreditation:

Delivery Method | Group Internet-based
Recommended CPE credit | Up to one hour of CPE
Recommended Field(s) of Study | Taxes
CPE Capability | Technical Expertise/Problem Solving
Prerequisites | None
Program Level | Basic
Advanced Preparation | None

Speaker

J. Christopher Coffman, Partner, FBT Gibbons