The U.S. government designated 6,576 communities for Opportunity Zone investment tax breaks on Nov. 5, with their status taking effect next year, the Treasury Department and Internal Revenue Service said.
The designations last 10 years under a permanent renewal of the incentive, the department said. Its Nov. 5 announcement was titled “Treasury, IRS Announce Opportunity Zones Designations for Over 6,500 Communities Across America.”
The department said the designations cover all 50 states, U.S. territories and the District of Columbia. Every nominated eligible census tract, a geographic area used to compile population statistics, received approval.
Of the approved tracts, 2,594 are in rural areas, the department said. Eligible rural communities qualify for increased tax benefits under President Donald Trump’s Working Families Tax Cuts.
The new designations become effective Jan. 1, 2027, the department said. The law established a process to select zones every 10 years, alongside permanently renewing the tax incentive and adding enhanced rural benefits.
Treasury Secretary Scott Bessent said the permanent renewal gives investors, entrepreneurs and local leaders greater certainty when committing money to communities that have struggled to attract investment.
Bessent said the new designations would help direct private investment to communities that could benefit most. He said the investment would support jobs, expand economic opportunity and help those communities grow over the long term.
The department said private-sector investment under the incentives has exceeded $110 billion since the Tax Cuts and Jobs Act of 2017 established them. It said the renewed incentives would continue attracting investment to economically distressed communities.
The department and the IRS released a list of 25,332 census tracts eligible for nomination on April 6, the department said. That list included 8,334 rural tracts eligible for increased benefits under the law.
The agencies began accepting nominations from governors and the District of Columbia’s mayor on July 1, the department said. Another 130 eligible tracts were nominated during the legally specified nomination period, including 28 in rural areas.
The department said nominations totaled 6,576 eligible tracts by the deadline. All received Opportunity Zone status, allowing the nominated communities to participate in the investment incentive when the designations take effect.
Frank J. Bisignano, chief executive officer of the IRS, said the permanent extension and expansion give states an opportunity to attract long-term investment. He said the program targets underserved, rural and economically distressed areas.
The department said it made the full list and a map of designated zones available, along with poverty rates and median family income for each tract.
