A Once-in-a-Decade Federal Opportunity

Positioning Siskiyou for Opportunity Zone 2.0 Designation

Board of Supervisors Briefing ● July 7, 2026 ● Yreka, California

Prepared by Siskiyou Economic Development
in partnership with Catalyst Public Policy Advisors

OZs in 60 Seconds

Federal tax incentive that moves private capital into rural America.

Investors reinvest unrealized capital gains into a Qualified Opportunity Fund (QOF) that deploys equity into a designated census tract — businesses, real estate, infrastructure. Hold long enough and the appreciation comes out tax-free.

1

Capital Gain Realized

An investor sells stock, a business, real estate — and faces a federal capital-gains tax bill.

2

Reinvest into a QOF

Within 180 days, the gain is rolled into a Qualified Opportunity Fund focused on OZ-designated tracts.

3

QOF Deploys in the OZ

The fund invests in businesses, real estate, or infrastructure inside the designated tract.

4

10-Year Hold → Tax-Free Exit

After holding 10 years, all appreciation on the QOF investment is permanently exempt from federal capital-gains tax.

10-Year Designation

Tracts designated January 1, 2027 stay designated for 10 years — a decade-long runway to assemble, finance, and close projects.

Investor-Driven Capital

Not a grant, not an entitlement — private equity chases the tax benefit into our tracts. The County doesn't write a check.

Why It Matters for Siskiyou

All 12 eligible tracts qualify as rural — unlocking enhanced incentives unavailable to urban OZs.

What's New in OZ 2.0

Permanent program. Bigger benefits for rural tracts.

The One Big Beautiful Bill Act made Opportunity Zones permanent — and stacked the deck for rural communities.

OZ 1.0 was a one-time, time-limited program. OZ 2.0 makes the program permanent, with new 10-year designation cycles. The first cycle takes effect January 1, 2027.

Inside OZ 2.0, Congress wrote three rural-only enhancements that materially change the investor math for places like Siskiyou — all 12 of our eligible tracts qualify as rural.

30% basis step-up at year 5

Rural-only — vs. 10% for urban OZs

50% substantial-improvement threshold

Rural-only — half the urban rehab requirement

100% tax-free appreciation at year 10

Permanent exemption for long-term holds

The Playing Field & Our Ask

12 OZ-eligible census tracts spanning the entire county.

What we need from the County

1

Application Lead

Designate a lead for application submittal and coordination with SCEDC and Catalyst.

2

Public Investment Record

Share the County's history of public investments — infrastructure, brownfields, P3s, federal/state funding — that strengthen the nomination.

3

Project Pipeline & Shovel-Ready Sites

Share known projects in the pipeline and sites with readiness, zoning, and infrastructure in place across the 12 tracts.

4

Alignment with Local Priorities

Confirm fit with the General Plan, CEDS, Regional Jobs First Plan, and other adopted priorities to demonstrate local support.

Discussion & Next Steps

A once-in-a-decade chance
to put Siskiyou on the map
for national investors.

With BOS concurrence today, we move directly into application support and submittal — and we hit California's nomination window with the strongest possible package.

Catalyst Public Policy Advisors

Nick Green

Principal · John Day, Oregon · nick@catalyst.win

Siskiyou Economic Development

Tonya Dowse · Jen Thackeray

Executive Director · Finance Director · Yreka, CA

Timeline

July 25, 2026

Applications due to California

Siskiyou submits its OZ 2.0 nomination package to the State.

August 2026

Public comment period

State posts nominations; counties respond to public input.

January 1, 2027

Designation effective

10-year designation begins; QOF capital can flow to designated tracts.

Rural OZ Case Study · Oregon Precedent

Mass-Timber Modular Housing — what a Siskiyou deployment looks like.

A QOF deploys capital into two stacked Siskiyou assets: a value-added wood-products manufacturing line and the workforce housing it builds. Forest feedstock → finished panels → modular homes — all on a single rural OZ tract.

Project typeManufacturing + 60-unit housing

Total project cost~ $42M

QOF equity (OZ 2.0)$14M

Rural basis step-up30% at year 5

Stacked incentivesCalCompetes · CEQA · EIFD · 1st-yr depreciation

10-yr investor outcomeTax-free appreciation on exit

60

Workforce homes

~80

Manufacturing jobs

10 yrs

Hold for full benefit

Indicative figures shown for board orientation, not a project commitment. Video courtesy of the Oregon Mass Timber Coalition and Bihn Communications via HoneModular.com; modeled on the structure of comparable rural OZ deployments including Catalyst / R3's Miller Springs workforce-housing program in Harney County, OR.