The Treasury Department and IRS announced Qualified Opportunity Zone designations for all 50 states, territories, and the District of Columbia.
Background: Opportunity Zones—which the One Big Beautiful Bill Act made permanent—provide federal tax incentives for reinvesting capital gains into distressed communities and will be designated every 10 years based on updated census data. Treasury and the IRS in April released guidance for eligible U.S. communities to be designated as QOZs.
Details: Treasury said:
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6,576 eligible census tracts were nominated by the end of the statutory window, including 2,594 in rural areas.
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All of the 6,576 eligible census tracts have been designated as QOZs effective Jan. 1, 2027, and they will retain the designation for 10 years.
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Designation as a QOZ can help communities attract new investment, create jobs, stimulate economic growth, and provide meaningful opportunities for residents.
ICBA View: ICBA has long supported the goals of the Opportunity Zones program to encourage investment in communities that are economically distressed. ICBA in July encouraged community bankers to work with their governors on nominations.