Opportunity Zones in Turlock

The Opportunity Zone (OZ) Program was established under the Tax Cuts and Jobs Act of 2017 to encourage the reinvestment of capital gains into economically distressed communities. The program offers preferential federal tax treatment for capital gains invested in qualified projects located within designated low-income census tracts.

Eligible investments may include new real estate construction, rehabilitation of vacant or underutilized properties, equity investments in operating businesses, and infrastructure or energy-related projects, among others. The Opportunity Zone incentive is designed to reward long-term, patient capital that generates sustained economic growth, job creation, and community revitalization in historically underserved areas.

Renewal of the Program: Opportunity Zones 2.0

The Opportunity Zone Program was originally scheduled to sunset on December 31, 2026. With the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, the program is now a permanent part of the federal tax code.

As part of this legislation, a new round of Opportunity Zone census tract designations—referred to as “Opportunity Zones 2.0”—will be introduced.

What to know:

July 1, 2026: Governors may begin nominating a new map of eligible census tracts
January 1, 2027: The U.S. Department of the Treasury will certify nominations, and the new map takes effect
Duration: Designations will remain in place for 10 years
Future updates: Opportunity Zones will be refreshed every 10 years going forward

Effective 1/1/27, OZ investors in a qualified OZ Fund can defer capital gains for 5 years on other asset sales (if invested in businesses or property in OZ area) and receive a 10% basis step-up. Profits from a future OZ asset sale will be capital gains tax free.

Development of new commercial, industrial and multi-family apartments are the most prevalent OZ investments.

Turlock Opportunity Zone Map

For more information on Opportunity Zones, please visit:

California Business and Economic Development

California Department of Finance:

California Opportunity Zones information and maps