Opportunity Zones 2.0: Local Input Process Opens
Opportunity Zones 2.0: Local Input Process Opens
As you may know, the Opportunity Zone 2.0 designation process will be completed this year to determine the qualified opportunity census-zone tracts for the next 10-year cycle. By the end of September, Governor DeWine will nominate 25% of Ohio's eligible census tracts to US Treasury for inclusion in the program.
As an important part of informing the Governor's selections, local governments and economic development organizations are welcome to complete the survey on the Ohio Department of Development's website to help them know which OZ-eligible tracts in their community they would like to see prioritized for designation. The survey will be open until July 10th.
What are Opportunity Zones?
Created by Congress in 2017, Opportunity Zones are federally designated, economically distressed census tracts that encourage private investment through targeted tax incentives. Investors who direct capital into qualifying projects within these communities may be eligible for federal tax benefits, helping spur economic development and revitalization.
What is Opportunity Zones 2.0?
In July 2025, Congress made the Opportunity Zones program permanent while updating several aspects of the program, including stricter eligibility requirements and a process to redesignate zones every 10 years.
The next designation cycle begins July 1, 2026, when governors across the country will have a 90-day window to nominate eligible census tracts. Newly designated Opportunity Zones will take effect January 1, 2027, and remain in place through December 31, 2036.
What’s new?
The updated program includes additional incentives for Rural Opportunity Zones. Generally, zones are considered rural if they are located outside cities and towns with populations over 50,000.
Eligibility requirements were also tightened. The income threshold for qualifying tracts has been lowered from 80% to 70% of area median family income, the contiguous tract provision is eliminated, and the number of eligible tracts nationwide shrinks by about a quarter. As a result, some of Ohio’s original zones will lose their status.
Ohio’s Opportunity Zone 2.0 Allocation:
There are 1,032 eligible census tracts in Ohio that meet federal requirements for consideration.
Governor DeWine may nominate up to 258 tracts (25 percent) by September 2026 for designation by the U.S. Department of the Treasury as Qualified Opportunity Zones beginning January 1, 2027.
Local Input Requested:
To help inform those nominations, the Ohio Department of Development is seeking recommendations on which eligible tracts should be prioritized.
Communities should consider factors such as the tract's importance to local master plans and the types of development intended for those areas, the existence of project-ready infrastructure, and previous state and federal investments made within the tract area.
Who can Provide Input?
Priority nominations for the program will be accepted from:
· Counties
· Municipalities
· Townships
· Economic Development Organizations
How to submit:
Complete the Ohio Opportunity Zones 2.0 Nomination Form before July 10.
More Information:
Visit Ohio Opportunity Zones Tax Credit Program | Development or email Patrick Conley, Business Incentives Administrator, at Patrick.Conley@development.ohio.gov