Federal designations will encourage private investment in communities across 27 counties, including rural and tribal areas
OLYMPIA, Wash. — The U.S. Department of the Treasury has approved all 99 census tracts nominated by Gov. Bob Ferguson for designation under the federal Opportunity Zones 2.0 program. The approved areas span 27 counties, including 17 tribal lands and 36 rural communities. The new designations take effect Jan. 1, 2027.
The approval marks the next step in Washington's efforts to attract private investment to low-income communities. Opportunity Zones encourage investors, developers and financial institutions to invest in businesses, housing and other community development projects within designated census tracts through federal tax incentives.
"Every community in Washington deserves the opportunity to grow and prosper," Gov. Ferguson said. "With all of our nominations approved, we can help connect private investment with communities that are ready to build housing, support local businesses and create jobs. These designations give communities another tool to shape their economic futures."
Gov. Ferguson announced the state's 99 nominations Oct. 8, following a months-long public engagement and application process led by the Washington State Department of Commerce. Commerce received 152 applications and developed recommendations based on investment readiness, community need and policy alignment.
Community members, business leaders and federally recognized tribes in Washington participated in public engagement opportunities that helped inform the state's selection criteria and nomination process.
"These designations reflect months of collaboration with communities across Washington," Sarah Clifthorne, Commerce interim director, said. "We listened to local priorities and evaluated opportunities for investment that align with community needs. With federal approval secured, our focus turns to helping communities share their opportunities and connect with investors who can support long-term economic development."
Building on the original Opportunity Zones program
Established under the federal Tax Cuts and Jobs Act of 2017, the original Opportunity Zones program encouraged private investment in designated low-income census tracts. The first generation of the program spurred an estimated $100 billion in private investment nationwide.
Congress made the program permanent in July 2025, establishing new designation cycles every 10 years and updating eligibility requirements, investment incentives and reporting standards.
Washington's original program included 139 designated census tracts across 36 counties. Those designations remain in effect through Dec. 31, 2028, overlapping with the new Opportunity Zones 2.0 designations during 2027 and 2028.
The updated program also includes enhanced incentives for qualifying investments in rural Opportunity Zones.
What's next for the program
The newly approved Opportunity Zones will become effective Jan. 1, 2027, and remain designated through Dec. 31, 2036.
Commerce will continue providing information and resources to help communities promote their designated areas and connect with potential investors. Communities, project sponsors and investors can explore the approved census tracts through Commerce's interactive Opportunity Zones map and dashboard.
For more information, visit Commerce's Opportunity Zones webpage.
|
