Gov. Bob Ferguson has nominated 99 low-income and rural communities across Washington for the federal Opportunity Zones 2.0 program, which gives investors tax incentives to fund real estate development and businesses in those areas.
The nominations, chosen from 152 applications, represent 27 counties and 17 tribal lands. Thirty-six are in rural communities. The U.S. Treasury Department will review and certify the nominations, and the new designations are scheduled to take effect Jan. 1, 2027. The full list is on the state’s Opportunity Zone dashboard.
The updated program adds incentives for rural areas. Investors who hold a Qualified Rural Opportunity Fund investment for five years get a 30% reduction in taxable value, compared with 10% in non-rural zones, and rural properties need capital improvements equal to only 50% of their adjusted basis to qualify, down from 100%. Once certified, a zone keeps its status through Dec. 31, 2036.
Designations from the first round, made in 2018, remain active through Dec. 31, 2028. The state pointed to Bremerton’s Marina Square, a waterfront development completed in 2023 on a former parking lot, as one completed project. It has 270 residential units and nearly 13,000 square feet of ground-floor retail.
The Department of Commerce encourages investors to prepare their strategies before Jan. 1 so they can deploy capital early in 2027.
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