What is a Rural opportunity zone?
A rural opportunity zone is a federally designated census tract located outside metropolitan areas that qualifies for enhanced tax benefits under the One Big Beautiful Bill Act opportunity zone program. These rural designations offer 30% capital gains reductions for five-year investments, triple the 10% reduction available in standard opportunity zones. Rural zones must meet specific geographic criteria, including a population density of less than 1,000 per square mile, a location outside metropolitan statistical areas, or an official USDA rural classification. The Act mandates that at least 33% of new opportunity zone designations through 2033 must be rural areas, ensuring substantial capital deployment in agricultural, manufacturing, and natural resource communities. Investors can access enhanced benefits by contributing capital gains to certified opportunity zone funds that invest exclusively in qualified rural census tracts. Strategic coordination with Tax loss harvesting maximizes overall investment tax efficiency while supporting sustainable rural economic development through patient capital commitments.
.png){kind=small}