Treasury approves 238 new Opportunity Zones in Georgia, fewer than in 2018

Treasury opened the second Opportunity Zone designation cycle on July 1, with 25,332 eligible census tracts nationwide, 8,334 of them qualifying for rural benefits ^[1]. Governors could designate up to 25% of their low-income tracts ^[2]. Treasury credited the incentive with “tens of billions” of private investment since it was created in 2017 ^[1].

By Oct. 29, Treasury had approved 238 zones for Georgia, split nearly evenly between rural and metro areas ^[2], and 44 for Iowa ^[3].

The new maps are smaller in all three states

We calculate that Georgia has about 8% fewer zones than in 2018 and Iowa about 29% fewer, while Massachusetts nominated about 25% fewer ^{[2][3][4][5][6]}. Massachusetts spread its 104 nominations across 46 municipalities and said certification was expected within weeks of its Oct. 2 submission ^[4].

Georgia said it picked tracts by combining local nominations, a model of where development was likely and existing statewide priorities ^[2]. Treasury said a state that skipped an eligible tract this cycle has to wait for the next one, about 10 years away ^[1].

Rural zones carry larger tax benefits

Massachusetts summarized the rules for qualified rural opportunity funds, which invest in zones that meet the rural test ^[4]. Roughly a third of eligible tracts nationwide qualify, by our math from Treasury’s count of 8,334 rural tracts out of 25,332 ^[1].

How to use this

For developers and landowners

1. Look up your parcel’s census tract on your state’s new list before you market it as an Opportunity Zone site. Georgia posted an interactive map of its 2027 designations ^[2].
2. Do not rely on a 2018 designation for a 2027 deal. Iowa’s count fell from 62 to 44 ^[3][6], so some tracts that qualified before are off the map.
3. Price rural renovations against the lower test. On a building with a $400,000 basis, we calculate the 50% rural threshold means $200,000 of improvements, against $400,000 at 100% ^[4].
4. In states still waiting on Treasury, ask the state economic development office for its submitted list. Massachusetts published its nominations, 104 tracts across 46 municipalities, before Treasury certified them ^[4].

For investors with capital gains

1. Ask your tax adviser how the step-up applies to your gain and when an investment can start. Treasury said the new tracts are eligible for investment beginning Jan. 1, 2027 ^[1].
2. Compare rural and non-rural funds on the same gain. On a $1 million deferred gain, we calculate a 30% step-up excludes $300,000 and a 10% step-up excludes $100,000 ^[4].

For fund sponsors

1. Re-check every pipeline project against the final state lists, and tell investors in writing which assets sit in a 2027 zone. Georgia’s 238 approved zones compare with 260 in 2018 ^[2][5].
2. Build 2027 offering documents around the Dec. 31, 2036 end of the designation period, since the zones run on a fixed 10-year cycle ^[1][4].