Treasury Opens the New Designation Cycle for Opportunity Zones

The Working Families Tax Cuts Permanently Established a Process for States to Drive More Capital to Overlooked Communities Across America

WASHINGTON - The U.S. Department of the Treasury announced the opening of the next nomination period for states, territories, and the District of Columbia to nominate eligible communities to be designated as Qualified Opportunity Zones (QOZs). Under President Trump's Working Families Tax Cuts, the Opportunity Zone tax incentive was permanently renewed, enhanced incentives for investment in eligible rural communities were added, and a process was established for redesignating zones every 10 years.

"Under President Trump's leadership, the Working Families Tax Cuts permanently renewed and strengthened Opportunity Zones, giving investors, entrepreneurs, and local leaders the long-term certainty they need to commit capital to communities that have been overlooked for too long," said Treasury Secretary Scott Bessent. "With the nomination period now open, governors have the opportunity to help direct private investment to communities that stand to benefit most. Treasury looks forward to working with states to expand economic opportunity, support job creation, and unlock long-term growth in communities across the country."

To assist with this process, the Community Development Financial Institutions Fund (CDFI Fund) has developed an Opportunity Zone Nomination Tool, through which governors can identify and select communities, and access detailed instructions for completing and submitting nominations.

Background

Under President Trump's Working Families Tax Cuts, the permanent renewal of the Opportunity Zone tax incentives, including enhanced incentives for investment in eligible rural communities, will continue to boost private investment to underserved communities across America, building on tens of billions of private sector dollars already invested since these tax incentives were established by the 2017 Tax Cuts and Jobs Act.

The current nomination period will determine which census tracts are eligible for new investment beginning January 1, 2027. Because new designations will occur only once every 10 years, jurisdictions that do not nominate an eligible tract during this window would not have another opportunity until the next designation cycle.

The census tracts eligible for designation include some of the most distressed areas in the country, and designation as a QOZ can help attract new investment, create jobs, stimulate economic growth, and provide meaningful opportunities for residents. The poverty rate, median family income rate and other variables will be available in the CDFI Fund's Community Investment Mapping System (CIMS) and on the Treasury Department's data transparency page which is available here.

On April 6, the Treasury Department and the IRS also released a list of 25,332 eligible census tracts for nomination, of which 8,334 are eligible for rural benefits enacted as part of the Working Families Tax Cuts. Additional information on nomination procedures was sent directly to the Governors and the Mayor of the District of Columbia. The list of eligible census tracts is available here.

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