Opportunity Zones 2.0
Opportunity Zones 2.0 (OZ 2.0), enacted as a permanent program through the “One Big Beautiful Bill Act,” builds upon the original federal Opportunity Zone program established under the 2017 Tax Cuts and Jobs Act to encourage long-term private investment in economically distressed communities through tax incentives. The updated framework is intended to improve transparency, accountability, and overall community impact by directing investment more strategically toward high-need areas, expanding opportunities for rural and underserved communities, encouraging investment in operating businesses in addition to real estate development, and strengthening reporting requirements related to job creation, economic growth, and community development outcomes. OZ 2.0 also provides for the potential redesignation of eligible census tracts using updated economic data to better align investment incentives with current community needs.
ADECA has now finalized nomination forms and guidance with respect to the Opportunity Zones 2.0 program. For those tracts that qualify, there will be a competitive selection process in the coming months.
OZ 2.0 Workshop
ADECA hosted a workshop on June 30, 2026 to review the application materials and selection process in detail. The presentations from this workshop are available below:
OZ 2.0 AL Kickoff Presentation
OZ 2.0 Main Nomination Form Overview
OZ 2.0 Nomination Process Guide Summary
Applicants will have until July 31 at 12:00 p.m. to submit completed applications to ADECA for consideration. All applications should be submitted to OpportunityZones@adeca.alabama.gov.
Under Opportunity Zones 2.0, ADECA will be able to select 141 eligible census tracts, compared to 158 eligible tracts under the original Opportunity Zones 1.0 program.
Please see the Alabama Opportunity Zones 2.0 Nomination Guide, Main Nomination Form, and Tract Nomination Schedule below. These documents will be used during the submission process for Opportunity Zones 2.0 applications to ADECA.
Alabama Opportunity Zones 2.0 Nomination Guide
Alabama Opportunity Zones 2.0 Main Nomination Form
Alabama Opportunity Zones 2.0 Tract Nomination Schedule
Opportunity Zones 1.0
The Opportunity Zones program is a new alternative economic development program established by Congress in the Tax Cuts and Jobs Act of 2017 to foster private-sector investments in low-income rural and urban areas. This is a new program with many moving parts. The Alabama Department of Economic and Community Affairs presents this brochure to give you a basic overview of the program and how it is being implemented in Alabama.
Click the map image to open an interactive version.
What are Opportunity Zones?
The areas eligible for submission as Opportunity Zones are low income census tracts with a poverty rate of at least 20 percent and a median family income of less than 80 percent of the statewide or area median income. Census tracts are statistical subdivisions of a county established by the U.S. Census Bureau. Each tract averages between 1,200 and 8,000 in population and the nominated tracts vary in size from 199 acres to 235,352 acres.
How can they benefit my area?
The program provides a federal tax incentive for investors to use their unrealized capital gains into Opportunity Funds dedicated for investing in the designated Opportunity Zones.
How many Opportunity Zones have been selected?
Congress empowered governors to nominate Opportunity Zones in their states by using up to 25 percent of their low-income community census tracts. In Alabama, 629 of the state’s 1,181 census tracts qualified as low-income community tracts. Of those 629 eligible tracts, Governor Kay Ivey was authorized to select 158 as Opportunity Zones.
Who selected them?
The Governor’s Office, with the help of ADECA, identified and selected the 158 Opportunity Zones from the qualifying tracts. There is at least one Opportunity Zone in each of the state’s 67 counties.
How were they selected?
The Governor’s Office and ADECA used an objective methodology that involved input from a variety of resources to determine areas where the program could be most effective. Methods used in the selection process included a county-by-county examination of previous designations as advantage sites or industrial sites, a review of aerial imagery for development activities by ADECA’s Geographical Information Systems Unit and data and research compiled by federal, state and local organizations.
Governor Ivey submitted Alabama’s nominations for Opportunity Zones to the U.S. Department of the Treasury on March 20, 2018. The zones were approved by the Treasury Department and the IRS on April 18, 2018.
Although ADECA assisted in identifying and selecting Opportunity Zones within the state, ADECA does not provide certifications or verifications that a property lies within an Opportunity Zone. We do, however, provide an interactive map on our website for reference. The map shows the location of each Opportunity Zone, along with details including the census tracts, city, county, etc.
More information about Opportunity Zones in Alabama is available at OpportunityAlabama.com.
Proposed Administrative Rule
Proposed Administrative Rule – Opportunity Zones
