Supporting Investment and Growth in North Carolina Communities

The State of North Carolina has begun the process of identifying and submitting to the United States’ Treasury a list of census tracts that will eventually be certified as Opportunity Zones (OZ) in North Carolina.  Soon, we will be asking for public input and comment on candidate locations that qualify for consideration.

In 2018, our Department coordinated nomination of the Opportunity Zones currently in use.  We will play a similar role this year and will post more on this page as information becomes available.

Beginning on July 1, 2026, state governors will have 90 days to nominate 25% of their state’s eligible low-income census tracts for inclusion in the next round of Opportunity Zones, which will take effect on January 1, 2027 and stay in effect for ten years.

Governor Stein designated the North Carolina Department of Commerce (Commerce) to lead the state’s nomination process and advise him on the tracts to submit to the U.S. Treasury for approval and certification.

How the Selection Process Will Work

The U.S. Census Bureau released its 5-year 2020-24 American Community Survey (ACS) data earlier this year but has not yet released the official map of eligible tracts. However, several third-party projections based on certified Census American Community Survey (ACS) data are available. To allow you to begin planning, we are publishing the map below that reflects these preliminary tracts. We will update this map if necessary once the finalized list from Treasury is published.

Following the release of the officially eligible tracts, Commerce will analyze the work to better understand their potential for economic development. Public input will play a major role in shaping North Carolina’s final nominations.

Planning Map

Only low-income census tracts identified from recent U.S. Census data can be nominated to become a new North Carolina Opportunity Zone.  Follow the link button below to explore a map that shows the pool of eligible tracts.  Please note we're publishing this map as a courtesy to assist local planning teams and we're still awaiting the official map from the federal government.

MAP | Census Tracts Eligible for Nomination as an Opportunity Zone

Nomination Guidelines

Opportunity Zone 2.0 provides an opportunity to strategically align federal tax incentives with state and local economic development priorities. North Carolina developed three state level guidelines local leaders should consider when evaluating eligible census tracts for their ability to support long-term economic competitiveness and community revitalization.

1. Business Development and Job Creation
   • Prioritize census tracts with strong potential to attract or expand businesses in high growth, high wage sectors such as advanced manufacturing, technology, life sciences, clean energy, and other targeted high wage industries.
   • Consider tracts containing industrial sites, including mega sites, certified sites, or select sites previously identified and prioritized by Commerce or the Economic Development Partnership of North Carolina (EDPNC).
   • Consider tracts with economic development projects underway with additional investment needed when the OZ 2.0 designations are in effect.
2. Strategic Local Revitalization
   • Prioritize tracts supported by documented local plans and/or recent investments for community revitalization, industrial site redevelopment, mixed-use projects, or other community-driven initiatives.
3. Pathways to Increased Housing Supply in High Need Areas
   • Prioritize tracts where OZ designation can meaningfully expand housing supply, particularly areas near major employment centers or transit corridors, locations with recent public infrastructure investments, identified sites targeted for significant housing development, and areas with documented regional housing needs.

Public Feedback

A public feedback form will be available on our website in April and will remain open for 30 days. Respondents will be asked to identify how nominated tracts align with the state’s three guidelines (business development, revitalization, or housing supply).

To ensure your input is received and the process is open, fair, and transparent, all public input and recommendations should only be made through this official feedback form. Commerce will accept recommendations from local governments, economic development organizations, and the general public.

Sign up below to receive email notification when the feedback form opens.

Allocations by County

Preliminary data suggests North Carolina may be able to nominate 202 census tracts for federal designation – a 20 reduction from the current OZ program. In 2018, every North Carolina county contained at least one eligible tract. Under the 2025 Opportunity Zone reauthorization, the low income eligibility threshold was modified, and seven counties no longer contain a qualifying tract: Camden, Currituck, Davie, Gates, Perquimans, Clay, and Yancey.

The 93 counties with at least one eligible tract will be able to nominate at least one census tract. The remaining 109 census tracts will be distributed across the 85 counties with at least two eligible tracts based on their county’s population.

Background

The Opportunity Zone (OZ) Program is a federal tax incentive created under the 2017 Tax Cuts and Jobs Act to encourage long-term private investment in economically distressed census tracts. These investments can help strengthen local economies through job creation, business growth, and redevelopment.

Investors may receive federal tax benefits for investing in designated Opportunity Zones, including:

• Deferring capital gains used for an OZ investment
• Reducing capital gains taxes if the investment is held for at least five years
• Eliminating capital gains taxes on profits from the OZ investment if it is held long term

The program was originally set to stop accepting new investments after December 31, 2026, but it was reauthorized and made permanent in 2025 with new tract designations every 10 years.

Contact

For questions about the Opportunity Zone nomination process, please contact:
Emily Roach Pandich
Director of Policy and Strategic Planning
Emily.roach@commerce.nc.gov