Opportunity Zones Just Got Better Under the OBBBA — Here’s How Small Business Owners Can Benefit
Content Team • October 14th, 2025
If you sold your business tomorrow and made a million-dollar gain, would you rather cut a $300,000 check to the IRS, or keep that money working for you?
That’s exactly the choice smart business owners face today. And thanks to new legislation, the OBBBA (One Big, Beautiful Bill Act), the Opportunity Zone program just became one of the most powerful, permanent tools for building wealth while reducing taxes.
As a San Francisco CPA and CFO serving clients across California, I’ve seen firsthand how well-structured Opportunity Zone investments can transform a tax burden into a long-term growth strategy. But success depends on understanding how the rules work, and how to align them with your bigger financial goals.
Let’s make this real.
Lisa runs a successful construction company in California. One year, she sells a property and earns a $500,000 capital gain. Normally, she’d owe around $150,000 in taxes to the IRS immediately.
Instead of paying that bill right away, Lisa learns about Qualified Opportunity Funds (QOFs), special investment vehicles that direct money into designated low-income or developing communities.
Here’s how it works for her:
Step 1: She defers her taxes.
Lisa rolls her $500,000 gain into a QOF. That $150,000 tax bill is now paused, and her full gain continues to grow inside the fund.
Step 2: She stays invested for 5 years.
Under the new OBBBA, she earns a 10% reduction on the original tax bill after 5 years.
Step 3: She invests in a Rural Opportunity Zone.
Because her fund supports a rural project, her tax reduction jumps to 30%, an even bigger savings.
Step 4: She holds for 10 years.
After a decade, all the appreciation inside the fund, any growth on that $500,000, becomes 100% tax-free.
So if Lisa’s investment grows to $1 million, that extra $500,000 gain owes zero federal tax.
She turned a tax obligation into a wealth-building opportunity, and contributed to economic development at the same time.
Originally, Opportunity Zones were set to expire in 2026, which discouraged many investors. The OBBBA made the program permanent and introduced new flexibility that benefits both businesses and communities statewide.
Key updates include:
Permanent extension. No more looming 2026 cutoff, so investors can plan long-term.
Expanded eligibility. Qualified Opportunity Funds can now invest in certain small businesses, not just real estate.
Simplified compliance. IRS guidance has made record-keeping clearer and easier.
Greater reinvestment flexibility. Investors can move gains between funds or projects while keeping their tax deferral intact.
For California entrepreneurs and investors, this permanence means you can integrate Opportunity Zones into your multi-year tax and wealth plan with confidence.
If the concept is new to you, here’s the quick version:
What is an Opportunity Zone?
A federally designated area that needs economic investment and job creation.
What is a Qualified Opportunity Fund (QOF)?
A partnership or corporation that invests in Opportunity Zone projects on behalf of investors.
How do you benefit?
You can defer capital gains taxes, reduce the eventual amount owed if you stay invested long enough, and eliminate taxes on new appreciation after 10 years.
This structure allows investors to convert taxable gains into tax-advantaged growth, a rare opportunity in U.S. tax law.
Before diving in, ask yourself:
Do you have a capital gain to defer? You must have a realized gain from a sale, property, stock, or business, to qualify.
Can you commit for 10 years? The largest benefits come with patience and a long-term view.
Are you comfortable with calculated risk? Many Opportunity Zone projects involve development or emerging markets. Proper due diligence and a qualified San Francisco CPA are essential.
If you answered yes, this could be an excellent addition to your broader tax and investment strategy.
From our work with Bay Area and California clients, Opportunity Zones often fit:
Real estate developers or investors used to multi-year projects.
Business owners with large capital gains from property or company sales.
Investors who value both financial and community impact.
They are less suitable for:
Short-term investors seeking quick liquidity.
Individuals without realized gains.
Those uncomfortable with project-based risk.
It’s a long-term approach, but one that rewards patience with extraordinary tax advantages.
Across the San Francisco Bay Area, Opportunity Zones intersect with neighborhoods undergoing exciting transformation, from SoMa redevelopment to innovation corridors in Oakland, Richmond, and San Jose.
By investing through Opportunity Funds, local business owners can:
Defer or reduce capital gains taxes.
Support regional growth in housing, clean energy, and small business.
Align profits with purpose while keeping wealth circulating locally.
As a California tax CPA, I often help clients evaluate both the financial and social return of these projects, balancing smart tax planning with meaningful community impact.
Opportunity Zone investing works best as part of a coordinated financial strategy.
For example, you might:
Combine your capital gain deferral with retirement or estate planning.
Use an LLC or partnership structure for liability protection.
Time your investment exits to align with business succession or relocation plans.
A San Francisco CPA who understands both the tax code and long-term financial planning can help you design the right structure, ensuring compliance and maximizing benefits.
Myth #1: It’s only for real estate developers.
False. The OBBBA expanded eligibility to include business and infrastructure investments.
Myth #2: It’s risky or unregulated.
Not true. Qualified Opportunity Funds are structured entities subject to IRS reporting and compliance.
Myth #3: You need millions to participate.
Many funds now allow smaller entries, even mid-six-figure gains can qualify.
Myth #4: It’s too late to benefit.
The program is permanent. Now is actually the ideal time to integrate it into your tax strategy.
Opportunity Zones have evolved into one of the most powerful ways to build long-term wealth while supporting real community impact. The OBBBA made the incentives stronger, simpler, and permanent, turning this once-limited program into a cornerstone of modern tax planning.
At BastaCPA, we help business owners and investors throughout San Francisco and the Bay Area:
Defer and reduce taxes strategically.
Build wealth through compliant, long-term planning.
Align investments with both profit and purpose.
If you’ve recently sold an asset or are planning to, don’t let tax season surprise you. Let’s explore how Opportunity Zone investing could fit into your California tax plan.
Schedule your consultation today and discover how a trusted San Francisco CPA can help you keep more of what you earn, and grow it responsibly for years to come.
Samy Basta brings you more than 20 years experience in tax, financial, and business consulting to his role as founder of Basta & Company. His focus is primarily strategic business planning, empowering clients to set priorities, focus energy and resources, and strengthen operations. In addition, Samy and his firm provide strategic counsel, and technical insight, on a wide range of needs, including tax saving strategies, tax return compliance, as well as choice of entity.
100 Pine Street, Suite 1250
San Francisco, CA 94111