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Two census tracts within the city of Walla Walla will be included in the federal Opportunity Zones 2.0 program, which is designed to spur private investment across economically distressed communities. The tracts are expected to be eligible for investment beginning Jan. 1, 2027.
Washington Gov. Bob Ferguson on Oct. 8, 2026, announced the nominations of 99 low-income and rural communities across the state for the Opportunity Zones 2.0 program, including census tracts 53071920500 and 53071920701 within Walla Walla city limits. As described in a release, the "second-generation program encourages investors, developers and financial institutions to fund real estate development and businesses in exchange for tax incentives."
The U.S. Treasury Department will review and certify the nominations. The designations are scheduled to take effect Jan. 1, 2027.
The Department of Commerce encourages investors to prepare their strategies ahead of Jan. 1, 2027, so they can deploy capital early in 2027 and immediately drive community impact. Investors can register their Qualified Opportunity Funds (QOFs) with the IRS and begin auditing their realized 2026 capital gains now by visiting bit.ly/4zkBui5. Additional details about Opportunity Zones are available at opportunity.zone.
Anyone with questions may contact the City of Walla Walla Development Services Department at 509-524-4710 or city.econ.dev@wallawallawa.gov. Staff are available to help investors navigate the local permitting process.
About Opportunity Zones
Opportunity Zones are federally designated census tracts created to attract private investment into undercapitalized communities. Investors who reinvest eligible capital gains into Qualified Opportunity Funds, which then invest in Opportunity Zone businesses or property, may qualify for meaningful federal tax advantages.
In the city of Walla Walla, rural zones investment dollars go even further. For the project to qualify, only 50% of the property’s original basis must be reinvested within 30 months, lowering early project costs and accelerating qualification. Further, in the city of Walla Walla, if an Opportunity Fund investment is held for at least 10 years, all appreciation above the stepped‑up basis is exempt from federal tax.
About Walla Walla’s Opportunity Zones 2.0
 Census Tract 53071920500
- Population: 2,661
- Mean Family Income Ratio: 0.81
- Environmental Health Disparity Index: 10
- Poverty Rate: 20.4%
- Unemployment Rate: 2.55%
Census Tract 53071920701
- Population: 3,260
- Mean Family Income Ratio: 0.8
- Environmental Health Disparity Index: 8
- Poverty Rate: 22.5%
- Unemployment Rate: 9.74%
Map and data sources: Washington state Opportunity Zone 2.0 Dashboard and Census Reporter.org
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