The Qualified Opportunity Zone program (the “Opportunity Zone Program”), first introduced in the 2017 Tax Cuts and Jobs Act and its subsequent rulemaking, was designed to spur economic development and job creation in low-income communities by offering investors significant federal tax incentives for development in those communities. With the passage of the One Big Beautiful Bill Act in 2025 (the “OBBBA”), the opportunity zone landscape has been reshaped, introducing new rules, enhanced benefits for rural investments, and a robust and technical reporting regime.

These changes are particularly significant for both traditional and clean energy projects, including natural gas, solar, wind, energy storage, and the rapidly advancing and increasingly important nuclear energy projects where capital-intensive infrastructure and long-term planning are essential. This article explores the evolution of the Opportunity Zone Program, particularly in light of the OBBBA’s substantial changes. These changes impact all aspects of the Opportunity Zone Program, including the dedicated qualified opportunity zones (“QOZs”) where all investment occurs, the OBBBA’s newly established Qualified Rural Opportunity Funds (“QROFs”), and the unique opportunities and considerations for all clean energy stakeholders, including landlords, tenants, lenders, developers, investors, operators, and others. Given the clean energy industry’s reliance on real property leasehold interests, this article also focuses on the potential benefits and statutory requirements that may impact clean energy projects with long tenancies.

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