Federal officials have published the full list of all designated census tracts for the second iteration of the opportunity zone program.
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The release of the new opportunity zone map comes one week after the extended deadline states and territories were given to nominate their proposed maps for the tax incentive program. The Treasury Department announced Thursday that 6,567 eligible census tracts were nominated, and all of them were officially designated as qualified opportunity zones
These zones will be effective as of Jan. 1 and will run through Dec. 31, 2036.
In April, Treasury and the IRS released a list of 25,332 eligible census tracts and said states could nominate no more than 25% of their eligible tracts.
Starting July 1, governors and the mayor of D.C. were tasked with proposing which tracts in their states and territories would become opportunity zones. The deadline to have these maps submitted to Treasury was Sept. 28, with one 30-day extension.
Treasury said it would then certify the nominations before the end of the year, although it isn't clear what that certification process entailed.
The first iteration of the program was established with the Tax Cuts and Jobs Act of 2017 as a way to steer private capital toward distressed areas.
The program allows investors to defer capital gains taxes and lower the basis on which they are taxed by deploying returns into opportunity zone funds that then invest in real estate projects or businesses in these areas.
More than $110B has been invested in these zones through the program's first iteration.
Under the One Big Beautiful Bill Act passed last year, the program became a permanent fixture in the tax code, with governors required to pick new census tracts every 10 years.
Opportunity zones 2.0 also changed the eligibility criteria, tightening the income threshold to 70% of the area median income from 80%. And the new iteration provides greater benefits for investment in rural areas.
The new map is significantly smaller than the opportunity zone 1.0 map, which had 8,764 QOZs.
Of the 6,567 in the newly designated map, 2,594 of them are in rural areas, according to Treasury.
“Today’s announcement of the new designations will help direct private investment to these communities, expand economic opportunity, support job creation, and unlock long-term growth in these communities across the country,” Treasury Secretary Scott Bessent said in a statement.
Bisnow has been analyzing local zones as they have been released. Below is a selection of what we have learned so far about the new map and its possible impacts.
Georgia's OZ Picks Could Revive Dead Mall
Gov. Brian Kemp nominated 235 census tracts, including the site of Gwinnett Place Mall, which the county plans to redevelop into a mixed-use destination. The state nominated 115 rural tracts, while Metro Atlanta selections include 31 in Fulton County and 13 in Gwinnett County. Read more here.
Pennsylvania Unveils Its OZ 2.0 Map
A draft map released ahead of the deadline showed Philadelphia has lost eligible areas, including in Fishtown, Kensington and Brewerytown, as the program shifts toward rural investment. Southwest Philadelphia is an exception, gaining four contiguous tracts. Read more here.
Massachusetts Targets Major Developments For OZ Breaks
Gov. Maura Healey nominated 104 census tracts across 46 municipalities, prioritizing areas with major developments already planned or with significant standing developer interest. Boston's 18 tracts include the site of a proposed 1.8M SF Dorchester redevelopment with roughly 2,000 housing units. Developers say the tax incentives could push stalled projects over the line. Read more here.
Dallas Could See $300M Annual OZ Investment Boost
Opportunity zones 2.0 could bring an additional $250M to $300M in annual equity investment to low- and moderate-income areas in the Dallas region, according to Savoy Cos. co-CEO Barrett Linburg. The number of nominated tracts across DFW's four major counties has more than tripled, though the land mass in an OZ has shrunk. Texas designated 608 tracts statewide. Read more here.
Peakline Targets $3B Investment In New OZs
Peakline Real Estate Funds launched its fourth opportunity zone fund, targeting up to $1.3B in equity and more than $3B in total investment with debt. The fund will pursue urban multifamily, mixed-use and industrial projects alongside rural housing and infrastructure. Read more here.
Senators Target Data Center Tax Breaks
Sen. Josh Hawley introduced legislation to block data centers from qualifying for opportunity zone tax breaks amid growing concerns over electricity costs and power demand. Data centers had originally been pitched as ideal economic drivers for rural areas that might struggle to attract other types of projects. Read more here.
Inside The Race For OZ 2.0 Investment
Clarion Partners Managing Director Jason Glasser joined Bisnow's First Draft Live to discuss how investors are navigating the smaller pool of eligible opportunity zones. Clarion is evaluating building apartments, build-to-rent housing, senior living and warehouse development in OZs. Read more here.
Developers Scrambled For A Spot On The OZ Map
Developers nationwide lobbied officials to include their projects in opportunity zones 2.0, hoping to unlock billions in tax-advantaged investment. Many found success. In Arizona, EVelution Energy's proposed $450M cobalt processing plant secured a nomination that could help it raise $50M in equity. Read more here.
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