The Working Families Tax Cuts Created a Permanent Process for States to Direct More Capital to Overlooked Communities
WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today announced the Qualified Opportunity Zone (QOZ) designations for all 50 states, territories, and the District of Columbia.
Under President Trump’s Working Families Tax Cuts, the Opportunity Zone tax incentive was permanently renewed, enhanced incentives for investment in eligible rural communities were added, and a process was established for redesignating zones every ten years. The new QOZ designations will become effective on January 1, 2027, and retain this designation for ten years.
“Under President Trump’s leadership, the Working Families Tax Cuts permanently renewed and strengthened Opportunity Zones, giving investors, entrepreneurs, and local leaders the long-term certainty they need to commit capital to communities that have been overlooked for too long,” said Treasury Secretary Scott Bessent. “Today’s announcement of the new designations will help direct private investment to communities that stand to benefit most, and expand economic opportunity, support job creation, and unlock long-term growth in these communities across the country.”
“Thanks to the leadership of President Trump, Qualified Opportunity Zones were permanently extended and expanded by the Working Families Tax Cuts giving states an opportunity to attract long-term investment into underserved, rural, and economically distressed areas,” said IRS Chief Executive Officer Frank J. Bisignano. “By designating thousands of new Qualified Opportunity Zones, the IRS and Treasury are enabling targeted investment and growth in communities where it is needed the most.”
Background
Under President Trump’s Working Families Tax Cuts, the permanent renewal of the Opportunity Zone tax incentives, including enhanced incentives for investment in eligible rural communities, will continue to drive private investment in some of America’s most distressed communities. This builds on more than $110 billion in private-sector investment made since these tax incentives were established by the Tax Cuts and Jobs Act of 2017.