CREDA’s Advocacy Alerts are generously supported by Issues Management Group and Pierce Atwood, LLP.
On October 2, the Healey-Driscoll Administration submitted its nominations for the next round of Opportunity Zones. A total of 104 census tracts across 46 municipalities were nominated to the U.S. Department of the Treasury for the program. Final certifications of the designations are expected later this fall.
The submitted tracts are available on the Executive Office of Economic Development’s website, which includes a map and descriptions of each.
Opportunity Zones are federally designated census tracts where investors can receive tax benefits by investing capital gains through Qualified Opportunity Funds (QOFs). The program was originally created by the Tax Cuts and Jobs Act of 2017 to spur private investment in low-income communities. In 2025, federal legislation made the program permanent and established a new round of designations every 10 years. The new designations are expected to take effect January 1, 2027.
In addition, the 2025 federal legislation made a few additional changes to the program:
- To be eligible for nomination in 2026, a census tract must have:
- A median family income at or below 70% (previously 80%) of the area median family income, or
- A poverty rate of at least 20% and a median family income at or below 125% of the area median family income.
- Contiguous tracts, which were previously allowed, are no longer eligible.
- Enhanced benefits for rural areas: Qualified Rural Opportunity Funds investing in rural Opportunity Zones benefit from:
- A 50% substantial improvement threshold (vs. 100% elsewhere)
- A 30% step-up in basis after five years (vs. 10% for other investments)
- New reporting standards: Beginning with tax years after December 31, 2026, Qualified Opportunity Funds must report annually on property type, residential units, total asset value, employment, and the specific census tracts where investments are made.
To ensure OZ 2.0 is more successful than OZ 1.0, CREDA has been collecting feedback from members on how the program could be improved at the state level in order to attract investment and support housing and economic development across the Commonwealth. CREDA will continue to work with the Healey-Driscoll Administration as this program is implemented.