Treasury Names 6,576 New Opportunity Zones

The federal government just redrew the treasure map for capital gains, and it fits in fewer pockets than before. On Nov. 5, the Treasury Department and the IRS named 6,576 census tracts in every state, the territories and D.C. as Qualified Opportunity Zones ^[1].

The new zones take effect Jan. 1, 2027 and keep that status for ten years, so this map sets where tax-favored investment can go through 2036 ^[1][3]. IRS chief executive Frank J. Bisignano said the agencies are "enabling targeted investment and growth" in distressed areas ^[1].

How we got here

• Treasury published a pool of 25,332 eligible census tracts on April 6, and 8,334 of them were rural ^[1].
• Each state was capped at 25% of its eligible tracts, and maps were due Sept. 28, with one 30-day extension allowed ^[3].
• All 6,576 nominated tracts were approved, including 2,594 rural ones that carry richer incentives ^[1].
• The first map, created by the 2017 tax law, had 8,764 zones, so by our math the new one has about 2,188 fewer ^[2][3].

But the tighter rules squeeze some city neighborhoods out. The income test dropped to 70% of area median income from 80%, Bisnow reported, and a draft Pennsylvania map showed Philadelphia losing Fishtown, Kensington and Brewerytown ^[3]. The tally also varies by outlet: Bisnow put the count at 6,567, while Treasury's release says 6,576 ^[1][3].

What it means for you

The tax break works by letting investors defer and cut capital gains taxes when they put gains into qualified projects inside a zone ^[2]. That makes the address the whole game: a duplex one block outside a designated tract gets none of it. In Dallas, Savoy Cos. co-CEO Barrett Linburg estimates the new map could bring $250 million to $300 million more in yearly equity to the region ^[3]. Check the official list before underwriting any deal pitched as an OZ play, since the old 2017 tracts are not the ones that count from 2027 ^[1].

Zoom out

Housing has been the program's biggest customer: an Urban Institute study found 64% of Opportunity Zone capital in Ohio went to residential projects, HousingWire noted ^[2]. With $110 billion already invested, by our math that is roughly $12 billion a year since 2017, and the new map tilts the next round toward rural towns ^[1][2].