Treasury Designates 6,576 New Opportunity Zones: What Investors Need to Know

The U.S. Treasury Department announced on November 5 that it had designated 6,576 new Qualified Opportunity Zones across all 50 states, the District of Columbia and U.S. territories, effective January 1, 2027.

The new designations follow the passage of the One Big Beautiful Bill Act of 2025, which made the Opportunity Zone program permanent and introduced additional tax incentives to encourage private investment in economically distressed communities.

The newly designated zones represent a 25% reduction from the 8,764 census tracts designated under the original program in 2018, reflecting stricter eligibility requirements. Under the revised income-based eligibility test, the median family income threshold has been lowered from 80% to 70% of the applicable benchmark.

Of the 6,576 new Opportunity Zones, 2,594 are classified as rural, representing more than 39% of the total.

 

What Has Changed for Investors?

The updated program introduces several important provisions:

• Rolling five-year capital gains deferral: Eligible gains invested in Qualified Opportunity Funds beginning in 2027 may be deferred for up to five years, subject to applicable requirements and earlier inclusion events.
• 10% basis step-up: Qualifying investments held for five years may receive a basis increase equal to 10% of the deferred gain.
• Enhanced rural incentives: Qualifying investments in Qualified Rural Opportunity Funds held for five years may receive a basis increase equal to 30% of the deferred gain.
• 10-year designations: The new census tract designations will remain in effect through 2036.

 

New York Receives 430 Opportunity Zone Designations

New York received 430 designations, including 210 in New York City, according to the newly released Treasury list.

Brooklyn leads the five boroughs with 67 designated census tracts, followed by the Bronx with 57, Manhattan with 41, Queens with 35 and Staten Island with 10. Together, Brooklyn and the Bronx account for nearly 60% of the city’s new Opportunity Zones.

Statewide, 124 designated tracts are classified as rural, making them potentially eligible for the program’s enhanced rural investment incentives.

The new designations give investors and developers an opportunity to reassess potential projects, particularly in areas where Opportunity Zone tax benefits could influence financing and investment decisions.

 

Where to Find the New Opportunity Zones

The Treasury Department has released the complete list of newly designated census tracts nationwide, along with an official mapping resource. Official Treasury map and designation resources: https://www.cdfifund.gov/opportunity–zones

View the complete 2027 Opportunity Zone designation list

Investors seeking more detailed geographic information can also consult state economic development agencies, many of which provide interactive maps, searchable census tract lists and other resources.

Examples include:

• New York Empire State Development
• New Jersey Department of Community Affairs
• Pennsylvania Department of Community and Economic Development
• California Governor‘s Office of Business and Economic Development
• Arizona Commerce Authority
• Texas Office of the Governor

These state resources can help investors identify census tracts and evaluate potential development opportunities. However, some maps may not yet reflect the November 5 designations and investors should confirm a tract’s status against Treasury’s official list and map.

 

What Investors Should Do Now

With the new Opportunity Zones taking effect January 1, 2027, investors, developers and property owners should review the updated designations to determine whether properties they own or are considering acquiring are located within the newly designated census tracts.

They should also assess how the new five-year capital gains deferral, basis step-up provisions and enhanced rural incentives may affect the timing and structure of future investments.

Importantly, properties in Opportunity Zones designated in 2018 may not be included in the new 2027 designations. The original zones generally remain designated through 2028, so investors should distinguish between the two rounds and consider which rules apply to their existing and planned investments.

Rosenberg & Estis is reviewing the new designations and their implications for real estate investment and will continue to provide updates as additional federal guidance becomes available.

For questions about Opportunity Zone 2.0 and its implications for real estate investment, please contact Adam R. Sanders, Member, Rosenberg & Estis, P.C.