Scott Manning, Jamie Schwedler, and Bruce Thompson co-authored an article in Urban Land Magazine about the federal Opportunity Zone program and how states will soon start selecting a new generation of eligible census tracts under a revised framework that will reshape where long-term investment capital could flow next.

"Beginning July 1, governors will be able to nominate new Qualified Opportunity Zones for designation effective January 1, 2027, launching what developers, investors, and local officials are expected to view as a high-stakes battle over which communities secure access to one of the federal government’s most powerful place-based investment incentives," they wrote. "The revised framework, enacted last year as part of legislation making the Opportunity Zone program permanent, also appears positioned to largely benefit rural communities through enhanced tax incentives and lower redevelopment thresholds, even as the law narrows overall eligibility standards for qualifying census tracts."

"The Opportunity Zone program was originally created in 2017 to encourage private investment in low-income communities through federal tax incentives tied to long-term capital investment," they continued. "Before Congress approved a permanent extension and revised framework last year, the original designation cycle was scheduled to sunset at the end of 2026."

Click here to read the full article: A New Opportunity Zone Competition Is About to Begin

Urban Land Magazine is published by the Urban Land Institute and delivers insights for senior leaders in development, finance, planning, design, and the public sector.