North Carolina Seeks Input on New Opportunity Zones for Economic Growth

North Carolina Seeks Public Input on New Opportunity Zones

The state of North Carolina is poised to redefine its landscape of economic growth and community development through the Opportunity Zone initiative. To achieve this, the North Carolina Department of Commerce is welcoming input from local governments, economic developers, and the public to identify potential areas for designation as new Opportunity Zones.

Governor Josh Stein has tasked the Department with collecting broad feedback on which qualifying low-income census tracts could best foster investment and development. These tracts are identified where poverty rates exceed 20% or family incomes are below 80% of the median income in the area.

“The Opportunity Zone program attracts dynamic capital investment into areas of the state that need it most,” said Commerce Secretary Lee Lilley. The program’s renewal aims to enhance housing supply, drive community development, and create jobs across the state.

Initially established in 2017, the Opportunity Zone program allows each state to designate up to 25% of its low-income census tracts as qualified Opportunity Zones. This provides a tax break to investors reinvesting unrealized capital gains, thus bypassing standard capital gains tax obligations. Although the program was set to cease new investments by December 31, 2026, recent federal legislation has made it permanent, necessitating new tract and zone designations every decade.

With 807 eligible low-income census tracts, North Carolina can nominate 202 tracts for the new Opportunity Zones. This presents a chance to strategically align federal tax incentives with state and local economic priorities. Feedback is sought based on three key state guidelines to ensure the selected tracts bolster long-term economic competitiveness and community revitalization.

Business Development and Job Creation

Focus on tracts with potential to attract or expand businesses in high-growth, high-wage sectors like advanced manufacturing, technology, life sciences, and clean energy.

Consider areas with industrial sites identified by Commerce or the Economic Development Partnership of North Carolina (EDPNC).

Target tracts with ongoing economic development projects that require additional investment under the OZ 2.0 designations.

Strategic Local Revitalization

Prioritize tracts with documented local plans or recent investments in community revitalization, industrial redevelopment, or mixed-use projects.

Pathways to Increased Housing Supply in High Need Areas

Emphasize tracts where OZ designation can significantly expand housing, especially near employment centers, transit corridors, and areas with recent public infrastructure investments.

The Commerce Department has made additional information available on their website at commerce.nc.gov/oz. The site offers details on the program, a map of eligible tracts, and a feedback form. The public comment period starts today, April 29, 2026, and will run until June 7, 2026, at 11:59 p.m.

The U.S. Treasury will certify the newly designated zones later this year, and they are expected to be operational by January 1, 2027.