New guidance sets timeline and criteria for states to nominate investment areas beginning in 2026.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) released updated guidance describing how states, territories, and the District of Columbia (D.C.) can nominate census tracts to become Qualified Opportunity Zones (QOZ). These zones are intended to encourage private investment in economically distressed areas.
“The IRS works collaboratively with the Treasury Department and the states to ensure a smooth QOZ designation process, which in turn encourages investment in Qualified Opportunity Funds that spur economic development,” said IRS Chief Executive Officer Frank Bisignano.
The nomination period is scheduled to begin July 1, 2026, with final designations expected to take effect on January 1, 2027—starting a new 10-year cycle. A total of 25,332 census tracts have been identified as eligible, including more than 8,000 that qualify for additional rural-focused incentives.
Opportunity Zones were established in 2017 to encourage private investment in designated, often underserved communities, though outcomes have varied across locations. The updated framework continues this structure through coordinated federal and state efforts, with a new round of designations scheduled to begin in 2027.
As the Lord Leads, Pray with Us…
- For Treasury Secretary Bessent as he oversees the implementation of the updated guidance on the investment in underserved communities.
- For Commissioner Bisignano and IRS officials as they direct the process for selecting opportunity zones.
- For federal personnel as they coordinate the designation process and engage with state and local leaders.
Sources: Department of the Treasury
