A recent feature about OZ 2.0 in the Business Journals examined how the new law’s tightened parameters will ultimately shrink the number of eligible OZ areas. As a result, cities and developers are already lobbying for inclusion. An excerpt from the feature details how OZ 2.0 narrows the focus on areas with the most need of redevelopment:
In the new version of the Opportunity Zone program, Congress narrowed the definition of “low-income community” to census tracts with a median household income that does not exceed 70% of an area’s median income, down from an 80% threshold previously. A census tract also would be eligible if it has a poverty rate above 20%.
Congress also removed the ability of governors to nominate census tracts that would not otherwise be eligible but were allowed in the previous edition of the program because they were “contiguous” to an eligible tract. Eliminating those tracts in the program’s new version shrinks the eligibility pool even further.
Under the original OZ Program, Ohio saw a disproportionately high concentration of investments focused on a handful of urban areas like Cleveland, Columbus, and Cincinnati, Five cities received 88% of the capital deployed through OZ funds, which left rural and Appalachian regions largely overlooked. The redrawing of OZ areas may present a recalibration toward more genuinely distressed tracts, and it will tilt toward more rural areas.
Zone redesignations begin July 1, 2026, with new zones effective Jan 1, 2027.
Widespread lobbying for redesignation of Ohio’s future Opportunity Zones is already underway. We’re following the process closely and playing an active role as subject matter experts at every opportunity.
Read more from the Business Journals – Opportunity Zones 2.0 will feature fewer zones and intense lobbying. Some areas have a leg up.