U.S. Treasury has approved 28 Nebraska census tracts for designation under a new version of the federal Opportunity Zones program, Gov. Jim Pillen announced Friday. The tracts include rural and urban communities across all three of Nebraska’s congressional districts.
The designations are scheduled to begin Jan. 1, 2027, after the tracts complete the federal certification process. Nebraska submitted the nominations during the summer as part of the second version of the program, known as Opportunity Zones 2.0.
“These identified tracts are now poised to benefit from investment that will help spur housing, jobs and attract workforce talent. Nebraska is open for business. This is another tool that will provide our communities the support they need for continued growth.” — Gov. Jim Pillen
How the program works
Investments in designated zones can be made through certified investment vehicles called Opportunity Funds. The funds can support projects such as new businesses and workforce housing developments. Investors may receive tax benefits, including deferrals on capital gains taxes, under the federal program.
The new program includes provisions intended to provide stronger incentives in rural areas. A Qualified Rural Opportunity Fund can offer investors a 30% basis step-up, compared with 10% for standard funds. The rural provision also reduces the substantial-improvement threshold for rehabilitation projects from 100% to 50%.
- 28 Nebraska census tracts were approved.
- The tracts are located in each of the state’s three congressional districts.
- The Opportunity Zone designations are set to begin Jan. 1, 2027.
The governor’s announcement identified the program as a potential source of investment for housing, business development and workforce growth in communities that receive the designations. The approved tracts include areas in both rural and urban Nebraska, and a map and list of the nominated areas are available through the Nebraska Department of Economic Development.
Pillen said Nebraska was among the first states to submit nominations for the updated program. The federal approval gives the nominated areas access to the Opportunity Zones framework once the designations take effect next year.
