Opportunity Zones (“OZ”) are designated census tracts where qualifying investments made through Qualified Opportunity Funds may receive federal tax benefits designed to encourage long-term investment in economically distressed communities. Each state’s zones are nominated by its Governor and certified by the U.S. Treasury.
Congress made the program permanent in 2025 while revising eligibility criteria and creating enhanced incentives for qualifying rural investments. As a result, Virginia must designate a new set of Opportunity Zones. The number of designated zones will decrease from 212 to 152, and only 607 census tracts are eligible for consideration, meaning many existing Opportunity Zones will not be redesignated.
Over the past several months, the Department of Housing and Community Development (DHCD) and Virginia Economic Development Partnership (VEDP) have solicited input from industry, local governments, and other stakeholders. The agencies are now evaluating eligible census tracts based on federal criteria, locality priorities, and the Governor’s four investment focus areas — housing development, downtown revitalization, business-ready investment, and regional asset development — before the Governor submits Virginia’s nominations to the U.S. Treasury by September 28, 2026.
Additional Resources
- Governor Spanberger’s Opportunity Zone Investment Priorities
- U.S. Department of Housing and Urban Development: Opportunity Zone Program Updates Effective 2027
- Virginia Department of Housing & Community Development: Opportunity Zones & How They Work
OZ Redesign Timeframe
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April 2026 |
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May-June 2026 |
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June-July 2026 |
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August 2026 |
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September 28, 2026 |
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