When most people think of Opportunity Zones, they imagine urban redevelopment. But the One, Big, Beautiful Bill Act (signed July 4, 2025) is shining a spotlight on rural communities, making it easier for investors to support growth and create jobs outside major cities.

Here’s what’s new:

1. Clearer definition of “rural”

Under the Act, a rural area is now defined as:

• Any area outside a city or town with over 50,000 residents, and
• Any urbanized area adjacent or contiguous to such a city.

This definition applies nationwide, including all states, D.C., and U.S. territories, ensuring rural investors know exactly where they can target Opportunity Zone investments.

2. Lower barriers for property improvements

Previously, investors had to meet a 100% “substantial improvement” requirement to qualify for Opportunity Zone tax benefits. Now, for rural QOZ (Qualified Opportunity Zones) properties, this threshold is reduced to 50%, effective July 4, 2025.

This change makes it significantly easier and more cost-effective for investors to revitalize rural properties while still accessing federal incentives.

Why this matters

• Investors: Lower upfront improvement requirements reduce risk and increase feasibility for rural projects.
• Communities: More investments mean job creation, economic growth, and infrastructure improvements in underserved areas.
• Advisors & developers: Clear definitions and lower thresholds simplify compliance and planning.

Opportunity Zones aren’t just an urban story anymore; rural communities are getting their moment in the spotlight. For those looking to combine impact with strategic investment, now is the time to explore the opportunities.

If you need help with your tax return, at My Accounting Now we have a team of accounting specialists, call us at 786-228-8689 or send us an email at info@myaccountingnow.com