Treasury Opens New Opportunity Zone Nominations After Trump Makes Tax Incentives Permanent

The renewed program gives governors a once-a-decade window to nominate distressed communities for tax-advantaged private investment beginning in 2027.

By yourNEWS Media Newsroom

The U.S. Treasury Department on Wednesday opened the next phase of the Opportunity Zone program after President Donald Trump’s Working Families Tax Cuts permanently renewed and strengthened the tax incentives for investment in distressed communities.

Qualified Opportunity Zones allow states to nominate economically struggling census tracts for tax-advantaged private investment. The program builds on Opportunity Zone incentives first created under the 2017 Tax Cuts and Jobs Act during Trump’s first administration.

Treasury Secretary Scott Bessent said the permanent renewal is intended to give investors, entrepreneurs and local officials long-term certainty as they plan development projects in communities that have faced limited access to capital.

“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,” Bessent said in a statement.

“With the nomination period now open, governors have the opportunity to help direct private investment to communities that stand to benefit most,” Bessent said.

The current nomination period will determine which census tracts qualify for new investments beginning Jan. 1, 2027. Opportunity Zone designations will occur only once every 10 years.

To assist states, Treasury’s Community Development Financial Institutions Fund launched an online Opportunity Zone Nomination Tool to help governors identify eligible communities and submit nominations.

Rep. Mike Kelly, R-Pa., chairman of the House Ways & Means Subcommittee on Tax, pointed to Erie, Pennsylvania, as an example of how the program can be used to spur local development. Kelly highlighted Erie’s Opportunity Zones during a Ways & Means Committee hearing on June 4 and invited Bessent to tour the city’s projects.

“Opportunity Zone investments have expanded housing, supported small businesses entrepreneurship, spurred innovation, and revitalized long-forgotten communities,” Kelly said.

“Erie, Pennsylvania, demonstrates the transformative potential of Opportunity Zones,” Kelly remarked.

Bessent said Treasury will work with states as they select communities for the next round of designations.

“Treasury looks forward to working with states to expand economic opportunity, support job creation, and unlock long-term growth in communities across the country,” Bessent said.

The renewed program is designed to direct private capital into areas selected by governors as having the greatest need and potential for economic growth. With the incentives now made permanent, the administration says the next round of Opportunity Zone designations will provide a long-term framework for investment, housing development, entrepreneurship and job creation in distressed communities.