Opportunity Zones (OZs) are economically distressed communities (2010 census tracts) designated by each state to encourage investment and economic development through tax incentives. There are 8,764 designated OZs.
This analysis looks at 7,582 OZs – 5,305 in urban areas and 2,277 in rural areas, excluding New Jersey, Kansas and territories. Established by the Tax Cuts and Jobs Act of 2017, these zones aim to spur growth and job creation in low-income areas by offering tax benefits to investors who commit capital to Qualified Opportunity Funds (QOFs). These funds then invest in businesses and properties within the OZs.
As of December 31, 2023, an estimated $150 billion in equity has been raised by QOFs since the program’s start in 2018. This substantial investment reflects the program’s success. Investments in OZs have been directed into a variety of projects aimed at economic revitalization.
Most OZ investments have gone into real estate, including affordable housing, mixed-use developments combining residential, retail, and office spaces and hospitality and commercial businesses. Some funds have been used to develop health care facilities and transportation improvements. While real estate dominates, the program’s intent is to encourage a broader range of investments that drive long-term economic growth.
The University of Nebraska System uses cookies to give you the best online experience. By clicking "I Agree" and/or continuing to use this website without adjusting your browser settings, you accept the use of cookies.
