Federal Opportunity Zones (OZs) were created by Congress in the Investing in Opportunity Act included in the Tax Cuts and Jobs Act of 2017. OZs are designed to stimulate long-term private investment in low-income urban and rural communities by allowing investors to realize significant federal tax benefits through investing capital gains in Qualified Opportunity Funds.
Benefits, which include tax deferrals and reduction, increase the longer investments are held in Opportunity Funds. Investors cannot invest directly in qualified projects or properties but must go through an Opportunity Fund.
Opportunity Zone 2.0 (Starting January 1, 2027 - 2036)
The Opportunity Zone (OZ) program, created in 2017 and administered by the U.S. Department of the Treasury, has been updated and made permanent through U.S. House Resolution 1—the One Big Beautiful Bill Act—passed by Congress in 2025. The renewed Opportunity Zone 2.0 program will take effect on January 1, 2027.
Opportunity Zone 2.0 continues the program’s mission of encouraging long-term private investment in low-income communities by offering federal tax incentives to investors, while strengthening accountability and refining eligibility criteria. The updated framework emphasizes support for rural communities, tightens the income threshold for eligible tracts and removes the contiguous tract allowance.
Program Highlights
- Permanent program framework with decennial zone selection.
- New deferral schedule and basis benefits: a universal five-year capital gains deferral and automatic 10% basis increase at the five-year mark.
- Rural incentives: a 30% basis step-up and a reduced 50% substantial-improvement requirement for existing buildings in rural OZs.
- Expanded reporting requirements, designed to increase transparency and accountability for funds and investors.
Selected Census tracts
Governor Kevin Stitt submitted his nominations for Opportunity Zone to the U.S. Treasury. Once approved by the U.S. Treasury, the new Opportunity Zones will go into effect on January 1, 2027.
104 Oklahoma census tracts have been selected for nomination.
The designated Opportunity Zones span rural and urban communities across all regions of Oklahoma, supporting investment and economic development statewide. The designations include:
- Northeast Region: 15 census tracts
- Northwest Region: 8 census tracts
- Southeast Region: 17 census tracts
- Southwest Region: 11 census tracts
The Oklahoma City metropolitan statistical area (MSA) includes 31 census tracts, and the Tulsa metropolitan statistical area (MSA) includes 22 census tracts.
The designations were made with input from the public, with survey participants emphasizing that Opportunity Zones should be able to recruit projects that create jobs, unlock private capital, be investment-ready and expand the tax base. With that feedback in mind, the OZ designations focused on census tracts meeting five categories:
- Industrial parks and industrial opportunities
- Community desire for housing
- Shovel-ready sites and investment opportunities
- Potential partnerships with other governmental entities
- Sales tax revenue generation
Oklahoma Opportunity Zone 2.0 Map
Explore the census tracts selected by Oklahoma for the Opportunity Zone 2.0 designation cycle.
View the Map: Oklahoma Opportunity Zone 2.0 Map
Resources
- Opportunity Zone FAQ | Internal Revenue Service
- On April 6, 2026, the Internal Revenue Service (IRS) provided guidance to states on submitting Opportunity Zone 2.0 designations.
- U.S. Department of Treasury Opportunity Zone Resources
- HUD Opportunity Zones Resources
Why Invest in Oklahoma
Often thought of as an energy state, Oklahoma has diversified its economy by rapidly growing the aerospace, manufacturing and business services sectors.
Investments in Oklahoma benefit from the state’s low cost of doing business, favorable regulatory environment and workforce development programs and services.
Oklahoma has rolling conformity to federal income tax law. This means our tax forms begin with your Federal Adjusted Gross Income.
Oklahoma's Priority Enterprise Zones
To coordinate with the federal government’s goal of alleviating poverty, Oklahoma will utilize Priority Enterprise Zones (PEZs) created in the Oklahoma Enterprise Zone Act to attract capital to Oklahoma’s Opportunity Zones. Investors who take advantage of Oklahoma’s Federal Opportunity Zones within PEZs can potentially layer other state and/or local incentives, including:
- Investment Tax Credit – Allows a corporate income tax credit for new investment or job creation. PEZs double the income tax credit and enjoy Enterprise Zone designation for the life of the selected OZ tracts, instead of being subject to typical annual updates. This provides certainty to businesses for multi-year planning purposes.
- Enterprise Zone Incentive Leverage Act – Allows local areas to capture state sales tax if the local areas have a match. PEZ would allow participation in leverage incentive, if it is extended.
- Tax Increment Financing (TIF) – Local incentive authorized in state statute utilized for redevelopment and reinvestment of blighted areas. PEZ designations are evidence of distressed areas and would be allowed to be incorporated in a Local Development Plan as a TIF District.
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Disclaimer
The materials contained on this website have been prepared by the Oklahoma Department of Commerce for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.
Your Research & Economic Analysis Services Team
Let us know if you need more information or specific data for site selection or other economic services.
Jon Chiappe
Aldwyn Sappleton
Lesli Crofford
Alexis Carr
Ernest Abrogar
Dat Nguyen
Walter Baker
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