Tax Deferral: Capital gains tax is deferred until the earlier of the date on which the investment is sold or exchanged, or December 31, 2026. Step-Up in Basis: Investors receive a step-up in basis for capital gains that are reinvested in a QOF. The basis increases by 10% if the investment is held for at least 5 years, and by an additional 5% if held for at least 7 years. Permanent Exclusion: If the QOF investment is held for at least 10 years, investors may be eligible to exclude any additional gains from the QOF investment from being taxed.