Administered by the U.S. Department of the Treasury, Opportunity Zones (OZs) are a federal program that offers tax incentives, including capital gains tax deferral and reduction, to investors who invest in designated low-income census tracts. The purpose of the program is to stimulate economic growth and job creation through private investment. Investors can use Qualified Opportunity Funds (QOFs) to invest in these zones and receive federal tax benefits in return. Opportunity Zones 1.0 were established under the Tax Cuts and Jobs Act of 2017 and made permanent in 2025 through the Opportunity Zone 2.0 legislation.

In addition to tax incentives, investing in Indiana’s Opportunity Zones offers:

  • Enhanced incentives for investing in rural areas, including a 30% basis step-up and reduced “substantial improvement” requirements.
  • Opportunities to revitalize distressed areas, attract private capital, and create jobs.
  • Access to resources, including guidance, mapping tools, and support for aligning investments with regional development priorities

Opportunity Zones 1.0

Indiana currently has 156 certified Opportunity Zone 1.0 census tracts across 58 counties and 83 cities and towns, covering over 1,000 square miles and serving approximately 500,000 residents. The Indiana Uplands has 10 designated opportunity zones. Each of Indiana’s certified 1.0 Opportunity Zones remains in effect through December 2028.

Opportunity Zones 2.0

Under the Opportunity Zone 2.0 program, state governors may nominate up to 25% of their state’s eligible census tracts every ten years for U.S. Treasury certification as Opportunity Zones. Governor Braun’s list included eight census tracts in the Indiana Uplands for submission to the U.S. Treasury for designation. Indiana’s census tract nominations were submitted on September 25, 2026, and, after federal certification, these Opportunity Zones will be in effect from January 1, 2027, through December 31, 2036.

For more information on Indiana Opportunity Zones, visit the IEDC Opportunity Zones website.

Please feel free to reach out to Julie Halbig at juliehalbig@regionalopportunityinc.org with questions about Opportunity Zones in the Indiana Uplands.