Opportunity Zones

The goal is to channel long-term capital into communities that have the potential for growth but struggle to access traditional financing. Public Comment Period Open DED received 221 intake forms identifying census tracts for consideration through the Opportunity Zone intake process. Click here to view the list of the census tracts submitted through that process. Inclusion on this list means the tract was submitted for review and does not mean it has been approved for nomination. DED is accepting public comments on submitted tracts as part of the broader nomination process. Comments may provide tract-specific information, support or concerns, and other local context that may inform final review. To submit a comment, click here to access the public comment form . Event Dates OZ 2.0 Webinars DED will host education webinars February - March Federal Release of Official Tracts The Treasury releases the official list of eligible low-income tracts. DED will provide listings of the eligible tracts and other relevant criteria. April Submission Period DED will provide a link to accept Requests for Consideration for Opportunity Zone (OZ) designations. April 7 - May 17 Missouri Department of Economic Development Reviews Submissions May - June Public Comment DED will release the tentative recommendations for public comment. July Finalize Recommendations to Governor Late July - August Submit OZ List to U.S Treasury August New OZs Made Official January How Opportunity Zone Investments Work Investors who realize a capital gain from the sale of an asset, such as real a business, can reinvest that gain into a QOF within 180 days. When they do: Deferral: Taxes on the original gain are deferred for up to five years. Reduction: Investors receive a 10% step-up in basis after five years, reducing the taxable portion of the original gain. Exclusion: If the investment is held for 10 years or longer, any appreciation on the new investment is tax-free. QOFs can finance a wide array of projects, ranging from startup operations and commercial developments to adaptive reuse of existing buildings, so long as they meet federal guidelines for eligible property and substantial improvement. What’s New Under Opportunity Zones 2.0 Congress updated the program through the One Big Beautiful Bill Act in 2025, making it a permanent feature of the tax code requiring that OZs be redesignated every 10 years as eligibility data is updated and adding new benefits for rural and long-term investments. Rolling Five-Year Deferral Window: Investors can now roll capital gains into QOFs at any time. Each investment receives its own five-year deferral period, replacing the previous fixed deadline system. Enhanced Rural Benefits: A new category of Qualified Rural Opportunity Funds (QROFs) triples the step-up benefit, providing a 30% basis increase after five years for investments in qualifying rural zones. Defines a “rural area” as any area other than: A city or town with a population of greater than 50,000 and An urbanized area adjacent to a city or town with a population in excess of 50,000. Additionally, rural projects now only need to meet a 50% substantial-improvement test instead of the full 100% requirement, allowing more flexible project rehabilitation (The 50% rule is already in effect). Qualified Opportunity Zones designated under the original program remain designated through December 31, 2028. Under the Opportunity Zones 2.0 framework, new designations are expected to take effect January 1, 2027, resulting in a two-year overlap (2027–2028). This page will be updated as the Department of the Treasury and the Internal Revenue Service issue additional guidance on how federal rules apply during the overlap period. Do I Qualify? Opportunity Zones 2.0 (effective 2027-2036) Stakeholders can review the official IRS Opportunity Zone 2.0 guidance and the accompanying Excel list of eligible Missouri census tracts .

Opportunity Zones (OZs) are federally designated, economically distressed census tracts that attract private investment through capital-gains tax incentives.