Opportunity Zones 2.0 – West Virginia

Opportunity Zones 2.0: A Stronger, Permanent Program Opportunity Zones (OZs for short) are federally designated census tracts where private investors can Opportunity Zones 2.0 – West Virginia Opportunity Zones 2.0: A Stronger, Permanent Program Opportunity Zones (OZs for short) are federally designated census tracts where private investors can receive significant tax advantages for investing in long-term projects that drive economic and community development. Investors who place capital into a Qualified Opportunity Fund (QOF) that, in turn, invests in a designated OZ tract may access three primary federal tax benefits: tax deferral, partial tax exclusion, and a step-up in basis on eligible gains. Opportunity Zones 2.0 builds on the first program, adding enhancements that strengthen its impact. This presents greater rewards for both investors and communities. Even better, Opportunity Zones are now permanent, and the designations are refreshed every 10 years to keep pace with investor interest and community needs. Eligibility Updates Latest 2020–2024 American Community Survey (ACS) data enables more accurate community assessments Change in the definition of low income community Contiguous tract restriction to prioritize truly underserved areas New Rural Opportunity Zones OZ investments receive a 10% basis step-up after a 5-year holding period, while the new rural designations provide a 30% basis step-up for QROF investments in rural areas after 5 years. This is a significant benefit for West Virginia, as the majority of our eligible tracts are expected to qualify as rural. Reduced substantial improvement requirement (now 50%), meaning projects no longer need to invest at least double the property’s basis to qualify. Designed to improve project feasibility in rural markets, like much of West Virginia Eligible tracts were released in April released by the Treasury. Download West Virginia OZ 2.0 Fact Sheet Eligible Tracts in West Virginia Federal criteria based on 2020-2024 ACS data, published in January 2026, was used to identify more than 202 eligible tracts in West Virginia. Of these, only 52 tracts can be selected and certified. In order to be considered eligible for OZ 2.0 designation, census tracts needed: A poverty rate of 20 percent or higher OR A median family income (MFI) less than 70 percent of the relevant benchmark Note: Ineligible tracts adjacent to eligible tracts cannot be nominated or certified under OZ 2.0 OZ 2.0 Mapping Tool Opportunity Zones Map created by OpportunityZones.com Download list of eligible tracts Questions? Additional and updates about Opportunity Zones 2.0 are available at the following federal websites: IRS – www.irs.gov/newsroom/opportunity-zones Regulatory guidance, compliance requirements and tax treatment Treasury – home.treasury.gov/policy-issues/tax-policy/data-transparency/qualified-opportunity-zones Eligibility lists, certification process and program updates HUD – www.hud.gov/opportunity-zones/resources General resources, eligible programs and federal updates. CDFA – www.cdfa.net/cdfa/cdfaweb.nsf/resourcecenters/oz.html Financing tools, OZ education and national best practice If you would like to connect directly about Opportunity Zones 2.0, call 304-558-2234 to connect with a team member. West Virginia Tract Selection – Key Dates April 2026 Treasury released the list of eligible census tracts for Opportunity Zones 2.0. May 1 – July 1, 2026 West Virginia Division of Economic Development accepts tract nominations. July 1, 2026 Federal nomination window opens (90-day submission period). Governor selects tracts to be nominated to US Treasury. Late 2026 Treasury certifies the final Opportunity Zone 2.0 tracts. January 1, 2027 New Opportunity Zone designations take effect. West Virginia’s Designation Process