Gov. Pritzker Launches Illinois Opportunity Zones 2.0 to Drive Investment in Communities Statewide

State revamps economic development tool to help attract private investment to communities across Illinois

CHICAGO - Today, Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) launched Illinois' Opportunity Zones 2.0 - a statewide initiative to identify and nominate the next group of federally designated Opportunity Zones that will help attract private investment to communities across Illinois. When a low-income community is designated as a Qualified Opportunity Zone through the federal program, it encourages private investment that promotes job creation and economic development in these areas.

"Opportunity Zones are a powerful and effective tool for driving investment in communities that are too often overlooked - and turning that investment into quality jobs and real opportunity," said Governor JB Pritzker. "With the launch of Opportunity Zones 2.0, we're modernizing the program to unlock more investment and ensure every Illinois community - especially rural communities - are benefitting from new growth and opportunities."

"As the Chairperson for the Governor's Rural Affairs Council, I've seen firsthand the widespread impact of these investments. These new incentives for rural areas will help not only draw business to new areas, but will help entire communities thrive," said Lieutenant Governor Juliana Stratton. "These Opportunity Zones will help drive investment across the state-making Illinois the best place to live and work, no matter your zip code."

The modernized Opportunity Zones 2.0 program helps ensure that new investments generate economic benefits and unlock opportunities for communities across Illinois. Updates to the program include new reporting requirements and additional incentives for qualifying Rural Opportunity Zones.

"By pairing a data-driven process with strong local engagement, we're positioning Illinois to support business growth, create jobs, and strengthen regional economies across the state," said DCEO Director Kristin Richards. "This next generation of Opportunity Zones will help ensure investment aligns with community priorities and advances our broader economic growth plan."

"Opportunity Zones are an important tool for attracting private investment and creating jobs in communities across Illinois," said Illinois Economic Development Corporation President and CEO Christy George. "With Opportunity Zones 2.0, Team Illinois can build on our state's strengths to attract new investment, support business growth, and create lasting economic momentum in every region of Illinois."

Following federal legislation that permanently reauthorized and modernized the Opportunity Zone program, Governor Pritzker is eligible to nominate a new set of qualifying census tracts for designation beginning in 2027. To identify the tracts best positioned to benefit from Opportunity Zone 2.0 status, DCEO has engaged local governments, economic development organizations, community leaders, developers, investors and residents. This data-driven, locally informed process enables the federal tax incentive to most effectively support Illinois' long-term economic growth.

"Opportunity zones are an important tool in Illinois' economic toolbox to help unlock private capital and encourage long-term growth in economically distressed areas," said Mark Denzler, president & CEO of the Illinois Manufacturers' Association. "The IMA worked collaboratively with the Governor's Office and Department of Commerce and Economic Opportunity on site designation, and we'll continue engaging to make sure Illinois manufacturers are leveraging this important program."

"The Chicagoland Chamber of Commerce is proud to participate in the Opportunity Zone designation process and support the State's efforts to identify communities where these tools can have the greatest impact," said Chicagoland Chamber of Commerce President and CEO Jack Lavin. "Opportunity Zones have the potential to attract investment, drive economic growth, and create new opportunities in neighborhoods across Illinois. We look forward to continuing to work with the State and our partners to ensure Opportunity Zones are leveraged effectively to strengthen local communities and create new jobs throughout the state."

Illinois' Opportunity Zones 2.0 framework builds on lessons learned from the first round of designations by emphasizing economic need, market readiness, community priorities and alignment with broader state economic development strategies. The comprehensive evaluation framework considers factors including investment potential, regional balance, and coordination with existing stackable programs, to maximize the impact of future Opportunity Zone designations.

"On behalf of the Chicagoland Opportunity Zones Consortium, we appreciated the opportunity to participate in the thoughtful and informative OZ designation process and are excited to continue working with the State of Illinois to best leverage Opportunity Zones post-designation to support impactful implementation," said Robin Schabes, Director, Chicagoland Opportunity Zones Consortium.

"We appreciate the State of Illinois' commitment to engaging regional partners in the Opportunity Zone process. SI Now looks forward to helping communities throughout Southern Illinois understand, promote and leverage these designations as another tool for attracting investment and supporting economic growth," said Deb Barnett, Senior Advisor to the Board, Southern Illinois Now.