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What Are Opportunity Zones 2.0?
Opportunity Zones 2.0 (OZ 2.0) is an updated federal investment incentive program created under the 2025 One Big Beautiful Bill Act (OBBBA). It provides tax benefits to encourage private investment in low-income census tracts. OZ 1.0 resulted in over $100 billion in capital investment, which primarily went to market-rate housing developments. Some of the key changes from the original program are that:
- The program is now permanent with a new 10-year designation cycle.
- Tracts nominated in 2026 will remain designated through 2036.
- Stricter eligibility rules and new reporting requirements will apply.
- Enhanced incentives are available for rural areas.
This is a once-in-a-decade opportunity to shape where private investment flows in your community. The designation process is competitive — and time is short.
Policy Chat: What You Need to Know and How to Act Now
Critical Deadlines at a Glance
A Note About State Deadlines
State processes often close weeks before the September 29 federal deadline. Do not wait to apply.
Early deadlines:
- Kansas: June 1
- Ohio: April 2026 (30-day portal)
- Texas: Accepting submissions now
Five Steps on How to Advocate for Your Community
1
Confirm Eligibility – Use the mapping tool to verify that your census tract qualifies using the 2020–2024 ACS data that was released January 29, 2026. Eligible tracts must meet income and/or poverty thresholds. Rural tracts may receive additional advantages under OZ 2.0.
2
Find Your State’s Process – Contact your state’s economic development or housing agency immediately to find out the internal deadline, whether a formal proposal is required and any public comment opportunities. Do not assume your state follows the federal September deadline.
3
Build a Strong Case –Â Governors prioritize tracts that are both in need and ready for investment. Your submission should demonstrate community need (i.e., poverty, unemployment, housing cost burden, disinvestment) and its investment readiness (i.e., projects in the pipeline, infrastructure, development interest).
4
Coordinate Locally – Engage local governments, community organizations, CDFIs and regional planning bodies. Coalition support significantly strengthens a nomination.
5
Submit and Follow Up – Submit materials through your state’s process. Keep submissions focused on eligibility, investment potential and community impact. Confirm receipt of the application in writing.
NCRC Tools to Support You
NCRC is providing two resources to support your advocacy:
- An interactive mapping application to identify eligible census tracts and assess community conditions.
- More information is available through your NCRC member representative, or by contacting NCRC’s Policy Advisor Manan Shah (mshah@ncrc.org).
Key Takeaway
Opportunity Zones 2.0 will shape the private investment landscape for the next decade. The process is competitive and time-sensitive. Members who act early, build strong cases and engage state decision-makers will be best positioned to direct investment to the communities that need it most.
Contact your state agency today. Do not wait for the federal deadline.
