The U.S. Department of the Treasury and the Internal Revenue Service released new guidance on Apr. 8 for communities to be designated as qualified opportunity zones (QOZs) under President Trump’s Working Families Tax Cuts. The announcement outlines procedures for states, territories, and the District of Columbia to nominate eligible census tracts for QOZ status later this year.
The move is intended to encourage private investment in underserved areas across America by providing long-term certainty through permanent renewal and enhancement of Opportunity Zone tax incentives. These incentives were first established by the 2017 Tax Cuts and Jobs Act, which has already led to tens of billions of dollars in private sector investment.
“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,” said Treasury Secretary Scott Bessent. “This guidance is an important next step to continue driving private capital into productive investment, job creation, and opportunity to local communities across America.”
IRS Chief Executive Officer Frank J. Bisignano said: “Permanently extending and expanding Qualified Opportunity Zones offers states an opportunity to attract long-term investment into underserved, rural, and 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.”
According to the Treasury Department’s announcement, governors from all 50 states as well as leaders from U.S. territories can begin nominating eligible census tracts starting July 1, 2026. After review by the Secretary of the Treasury, a new ten-year round of QOZs will become effective January 1, 2027.
A list identifying over twenty-five thousand eligible census tracts has been released; more than eight thousand are eligible for enhanced rural benefits enacted under these tax cuts. Additional information about nomination procedures will be sent directly to state governors and territorial leaders.
In coming weeks, further guidance is expected regarding implementation details for investors—including transition rules—and proposed regulations on information reporting.
