Published in Law360
In an article published on March 31 in Law360, VF Law Of Counsel Coni S. Rathbone highlights how the Working Families Tax Cuts Act of 2025 permanently reshapes the Qualified Opportunity Zone program and introduces new incentives for rural projects. While these new rural QOZ benefits can improve project returns and lower some compliance hurdles, they do not by themselves make weak projects financially viable, which is an important component for developers, investors, and legal counsel evaluating rural development opportunities.
“The Act made the Qualified Opportunity Zone program permanent by requiring the payment of taxes on invested capital gains 5 years from the date of investment, instead of on a fixed date,” said Rathbone. “Counsel advising developers should recognize that permanence fundamentally changes deal structuring, it allows developers to build long-term rural development strategies with confidence that the incentive framework will remain stable, enabling more predictable financial modeling and investor communications.”
Rathbone emphasizes that successful rural development still depends on sound fundamentals, disciplined budgeting, strong documentation, realistic projections, and the strategic stacking of federal, state, and local incentives. She also explains why tax incentives work best when paired with sound economics, realistic underwriting, and a well-structured capital stack.
“The permanent Opportunity Zone program represents an opportunity for developers and property owners to combine tools to allow financially feasible rural development, where it may not have been successful previously,” writes Rathbone. “Developers and counsel who invest the time to master these incentive programs will find themselves with a significant competitive advantage in rural development markets.”
Read the article in full, click here (subscriber-based).