The North Carolina Department of Commerce announced on April 29 that it is inviting local governments, economic development professionals, and the public to review and provide feedback on candidate areas that could become the state’s new Opportunity Zones. Governor Josh Stein directed the department to gather broad input to help identify which qualifying low-income census tracts are best positioned for investment and economic or housing development.
The department said this effort matters because the Opportunity Zone program is designed to attract capital investment into parts of North Carolina most in need of economic growth. “The Opportunity Zone program attracts dynamic capital investment into areas of the state that need it most,” said Commerce Secretary Lee Lilley. “The renewal of this federal program will help us expand housing supply, spur community-driven development, and create new jobs in North Carolina.”
Originally created in 2017 as part of federal tax legislation, the Opportunity Zone program allows each state to designate up to 25 percent of its low-income census tracts as qualified zones. These tracts are defined by a poverty rate of at least 20 percent or family incomes below 80 percent of area median income. The law provides tax breaks for investors who reinvest unrealized capital gains in these zones rather than paying standard capital gains taxes. The program was set to stop accepting new investments after December 31, 2026 but has now been reauthorized under Public Law 119-21 and made permanent, with designations required every ten years.
For this round, North Carolina can nominate up to 202 out of a pool of 807 eligible low-income census tracts as its next set of Opportunity Zones. The department outlined three main guidelines for evaluating these areas: prioritizing business development and job creation in high-growth sectors; supporting local revitalization plans; and increasing housing supply near employment centers or transit corridors.
A web page at commerce.nc.gov/oz provides more information about the nomination process, including an interactive map showing all eligible census tracts and instructions for submitting feedback forms during the public comment period from April 29 through June 7 at midnight.
Final selections will be certified by the United States Treasury later this year with new zones expected to take effect starting January 1, 2027.
