The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025 made Opportunity Zones (OZs) a permanent feature of the tax code. First introduced in 2017, OZs are federally designated, economically distressed census tracts where investors can receive special tax incentives for putting capital into local development projects. The next round of zone designations kicks off July 1, 2026, when state governors begin a 90-day nomination window. New zones will subsequently take effect January 1, 2027 and last through December 31, 2036.
There are some key changes from OZ 1.0 to OZ 2.0 that EDDs should understand. The biggest are that the program is now permanent, with zones redesignated every ten years, and eligibility has been tightened. The income threshold for qualifying tracts have 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. The most significant new feature for rural regions is the Qualified Rural Opportunity Fund (QROF), which offers investors a 30% basis step-up (compared to 10% for standard funds) and lowers the substantial improvement threshold for rehab projects from 100% to 50%. Rural areas are defined as locations outside cities and towns with populations over 50,000.
This resource page includes a variety of information on Opportunity Zones, including background information, updates on the designation process, mapping and data tools to support informed planning and decision making, and materials about local planning and implementation considerations. It also includes notes on how EDD and RDO staff can best use these resources to support their work. Contact NADO Program Manager Joe D’Antonio at [email protected] with any questions or to suggest additional resources to include on this page.
Last updated May 6, 2026
Economic Innovation Group: Opportunity Zones 2.0 — Where Things Stand After the One Big Beautiful Bill Act
https://eig.org/opportunity-zones-2-0-where-things-stand/
This overview from EIG, the organization that originally conceived the OZ policy, covers the new eligibility criteria, redesignation process, incentive structure changes, enhanced rural investment provisions, and other issues. EDDs looking for a single authoritative summary of what has changed should start here.
Economic Innovation Group: OZs 2.0 Resources Hub
https://eig.org/ozs-resources/
This centralized resource page brings together EIG’s updated eligibility map, policy analyses, webinar recordings for state and local policymakers, and guidance documents. It includes an interactive eligibility map showing which census tracts meet OZ 2.0 qualifying criteria nationwide based on the latest ACS data. EDDs can use this to access the most current OZ 2.0 information and tools.
HUD: Opportunity Zones Portal
https://opportunityzones.hud.gov/
HUD’s main OZ portal, updated for OZ 2.0, includes interactive maps of current 1.0 designations, rural area census tracts, information for investors and communities, and links to federal resources. The site also links to the HUD Exchange resources page which catalogs how various HUD programs (CDBG, HOME, Choice Neighborhoods, RAD) can be layered with OZ investments.
IRS: Opportunity Zones
https://www.irs.gov/credits-deductions/businesses/opportunity-zones
The IRS’s official OZ page covering eligibility requirements, filing information for Qualified Opportunity Funds, and links to regulations and guidance. EDDs can direct staff, communities, and potential investors here for information on the tax mechanics of the program.
Tax Policy Center (Brookings/Urban): What Are Opportunity Zones and How Do They Work?
https://taxpolicycenter.org/briefing-book/what-are-opportunity-zones-and-how-do-they-work
This resource works as a politically neutral explainer covering how the OZ program works, its structure, investment patterns, and early evidence on outcomes from the first round. It notes that just 1% of zones received 42% of investment and that 78% of investments went to just 5% of zones, which may be useful context for EDDs thinking about how to position their communities for the next round.
Congressional Research Service: Tax Incentives for Opportunity Zones
https://www.congress.gov/crs-product/R45152
CRS’s nonpartisan overview of the OZ program including the tax mechanics, evidence on investment patterns from the first round, the potential for “stacking” OZ incentives with other federal tools like New Market Tax Credits, and policy considerations. EDDs may want to consult this document when considering how federal economic development incentive programs may overlap in their regions.
Economic Innovation Group: Opportunity Zones 2.0 — A Guide for Governors and Mayors
https://eig.org/ozs-guidance/
This report walks through the national designation process and timeline, provides a framework for selecting zones strategically, and offers eight principles for a robust state selection process. It emphasizes that governors should engage regional stakeholders early and that states should use nominations to reward places that reduce barriers to investment. EDDs can use this to understand the process their governors will follow and to position their regions and localities for strong nominations.
[Webinar] Urban Institute: Selecting the Next Round of Opportunity Zones — New Evidence and Field Reflections
https://www.urban.org/events/selecting-next-round-opportunity-zones-new-evidence-and-field-reflections
This webinar reviews evidence on OZ investment trends from OZ 1.0 and field experience with the goal of informing how states should decide which places to nominate. It features researchers from Urban Institute, Brookings, and practitioners from organizations like Accelerator for America and National Equity Fund. Speakers also discuss how city and county officials and other local stakeholders can help states make strong nominations. EDDs can use this to understand what made certain zones successful and what factors to emphasize when advocating for nominations in their regions.
Urban Institute: Data to Inform 2026 Opportunity Zone Selections
https://datacatalog.urban.org/dataset/data-inform-2026-opportunity-zone-selections
The Urban Institute’s national data tool models OZ investment potential and classifies census tracts into three categories: “Less likely to attract OZ investment,” “More likely to attract OZ investment, with larger impact,” and “Likely to attract capital even without OZs.” While not dispositive, it reflects Urban’s experience working with stakeholders on OZs and its data analysis expertise. EDDs can download this data to identify “Goldilocks” tracts in their regions, places with genuine need and realistic investment potential.
Frost Brown Todd: Strategic Selection of Opportunity Zones 2.0 — A Governor’s Guide to Best Practices
https://fbtgibbons.com/strategic-selection-of-opportunity-zones-2-0-a-governors-guide-to-best-practices/
This guide offers a practical framework for the 2026 OZ redesignation, covering recommended income thresholds for tract selection, rural-urban split strategies by state type, the role of transportation access in rural designations, and how to balance investor interest against community need. It also reviews first-round performance data, including which zones attracted investment and why many did not. EDDs can use this to understand the criteria governors are likely to apply and to strengthen nomination cases for their regions.
[Webinar] Economic Innovation Group: OZs 2.0: What State and Local Leaders Need to Know
https://www.youtube.com/watch?v=yZE5Rv3eSdE
This recorded webinar from EIG provides state and local policymakers with practical guidance on the OZ program under the One Big Beautiful Bill Act. In particular, it addresses how states and localities can align designations with long-term community priorities and position themselves to attract private capital. EDDs can use this to help think through how their OZ strategy mirrors that of their existing community plans, including the CEDS.
Housing Policy Lab: Opportunity Zones Resources
https://www.localhousingsolutions.org/housing-policy-library/opportunity-zones/
This brief focuses on how the OZ program intersects with housing. It synthesizes research on where OZ 1.0 housing investment went, finding that capital concentrated in urban tracts with strong existing markets rather than the most distressed areas. It also includes practical examples of how cities used OZ incentives to support affordable housing. EDDs working on housing as part of their regional strategies may find the research summary and city-level examples useful for thinking about how to pair OZ designations with existing housing and land use tools.
Partners for Rural Transformation, Housing Assistance Council, and HOPE Policy Institute: Activating Rural Investments in the Next Round of Opportunity Zones
https://ruralhome.org/activating-rural-investments-in-the-next-round-of-opportunity-zones/
This brief offers recommendations for how states can ensure their OZ 2.0 designations reach rural communities, particularly areas of persistent poverty. It argues that the statute’s broad definition of “rural” is insufficient on its own and recommends that states layer additional criteria including persistent poverty status and alignment with existing state investments in broadband, housing, and economic development. It also covers stakeholder engagement, technical assistance for rural project sponsors, and includes OZ 1.0 rural case studies in affordable housing, senior care, historic revitalization, and broadband. It is particularly relevant for EDDs looking to advocate for rural tract nominations in their states or help communities prepare for OZ investment.
Novogradac: Opportunity Zones 2.0 Mapping Tool
https://www.novoco.com/resource-centers/opportunity-zones-resource-center/novogradac-opportunity-zones-20-mapping-tool
Novogradac’s free interactive mapping tool shows which census tracts are likely eligible or ineligible for OZ designation in the 2026 round. It categorizes tracts as “Likely Eligible, Likely Rural,” “Likely Eligible, Likely Not Rural,” “Likely Eligible, Potentially Rural,” and “Likely Not Eligible.” EDDs can use this to identify which tracts in their regions are likely to qualify under the tighter 2.0 criteria and to begin conversations with local governments.
Economic Innovation Group: OZ 2.0 Interactive Eligibility Map
https://www.arcgis.com/apps/dashboards/c473c71f0704408f934fbdc342caf1f1
EIG’s eligibility map gives its interpretation of which census tracts meet OZ 2.0 qualifying criteria nationwide based on the latest ACS data. EDDs should check both tools and compare results for their regions.
HUD: Opportunity Zones Map (1.0 and Rural Area Census Tracts)
https://opportunityzones.hud.gov/
HUD’s mapping tool shows current OZ 1.0 designations alongside rural area boundaries as defined by the OBBBA. It may be useful for EDDs comparing the current OZ map to the likely 2.0 eligibility landscape.
Treasury Department Guidance to States: Nominating Eligible Tracts
https://www.irs.gov/newsroom/treasury-irs-provide-guidance-to-states-for-nominating-census-tracts-as-qualified-opportunity-zones-under-the-one-big-beautiful-bill
This Treasury Department guidance, directed to gubernatorial offices, describes in detail the Opportunity Zones designation process. It also includes an official list of eligible Census Tracts for designation. There are 25,332 eligible Tracts, of which 8,334 are comprised entirely of rural areas. It is expected that this page will be updated with interactive tools to view the eligible tracts in the coming weeks. EDDs may find this useful for understanding specifically how governors will nominate tracts for designation.
EPA: Leveraging Opportunity Zones for Community Revitalization
https://www.epa.gov/smartgrowth/leveraging-opportunity-zones-community-revitalization
These reports, developed to help communities leverage their OZ 1.0 designations, describe how help communities can advance their plans and visions for redevelopment and revitalization, prioritize specific needs, preserve community character, and overcome project financing barriers to attract private capital:
Urban Institute: Opportunity Zone Community Impact Assessment Tool
https://www.urban.org/projects/capital-communities-scorecard-digital-user-guide
A tool for assessing the potential social impact of proposed OZ investments across six dimensions: jobs, community wealth building, housing, environment, health/services, and transportation. This may be useful for EDDs and local governments that want to evaluate whether proposed projects align with community priorities before lending support.
Local Infrastructure Hub/Results for America: Guide to the New Opportunity Zones — A Primer for Cities
https://localinfrastructure.org/resources/guide-to-the-new-opportunity-zones-a-primer-for-cities/
This series of case studies reviews cities that took active approaches to OZ implementation in the first round and makes recommendations for them this time around. It also includes a webinar recording. EDDs can share this with local governments as a resource specifically targeted for their needs.
TIP Strategies: Laying the Groundwork for Opportunity Zones 2.0
https://tipstrategies.com/insights/2025/12/groundwork-for-opportunity-zones/
This practitioner-focused guide lays out an approach to analyzing eligible tracts, overlaying community priorities, preparing investment prospectuses, building “stacks” with complementary tools (TIF, public-private partnerships, local grants), and understanding new compliance requirements. It can be used by EDDs as they look at making potential tract recommendations or shared with local and state partners.
EDA Presentation to Southwest Region Economic Development Association (SWREDA) on Opportunity Zones and CEDS Development, 2019
https://swreda.com/wp-content/uploads/2020/01/ivesoz-191213215840.pdf
This conference session presentation from the first round of Opportunity Zones includes advice aimed squarely at EDDs for integrating OZs into economic development planning, including through the CEDS. The presentation highlights key considerations for measuring and reporting OZ performance and ideas for leveraging CEDS planning to create durable coalitions that can spur investment in designated zones. Its recommendations may be relevant to EDDs and other economic development organizations as they begin to create plans to leverage new OZ designations in their communities.
This resource is offered through the Economic Development District Community of Practice (EDD CoP), managed by the NADO Research Foundation to build the capacity of the national network of EDDs. To learn more, visit: www.nado.org/EDDCoP. The EDD CoP is made possible through an award from the U.S. Economic Development Administration, U.S. Department of Commerce (ED22HDQ3070106). The statements, findings, conclusions, and recommendations in this resource are those of the author(s) and do not necessarily reflect the views of the U.S. Economic Development Administration or the U.S. Department of Commerce.
The views and opinions expressed by other organizations or outside publications referenced in this resource guide do not necessarily reflect the policies or views of the National Association of Development Organizations or its members.