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Novogradac Launches Opportunity Zones 2.0 Mapping Tool

In the wake of the recent passage of the One Big Beautiful Bill Act, Novogradac has introduced the Opportunity Zones 2.0 Mapping Tool, a significant resource designed for stakeholders involved in Opportunity Zones (OZ). This innovative tool is set to play a crucial role as census tracts are evaluated for potential eligibility in the next round of OZ designations.

What is the Opportunity Zones 2.0 Mapping Tool?

This new mapping tool allows users to identify census tracts that are likely to qualify for OZ designation based on the latest census data. The tool reflects the latest developments in the U.S. tax code, specifically following President Donald Trump’s signing of the One Big Beautiful Bill Act, which made the OZ incentive a permanent facet of tax legislation effective from July 4, 2025.

Jason Watkins, a partner at Novogradac's Atlanta office and leader of the Novogradac Opportunity Zones Working Group, emphasizes the importance of this mapping tool: "This tool will enable OZ stakeholders to assess whether specific census tracts stand a good chance of receiving OZ designation, facilitating early plans for community development across America."

Key Features of the Tool

The Opportunity Zones 2.0 Mapping Tool categorizes census tracts into various classifications:

• - Likely Not Eligible: These tracts are unlikely to meet the more stringent OZ eligibility criteria.
• - Likely Eligible, Likely Not Rural: Tracts that are likely to qualify for OZ designation but are located in populous areas (over 50,000 inhabitants).
• - Likely Eligible, Likely Rural: These tracts are expected to meet OZ criteria and are not adjacent to larger cities.
• - Likely Eligible, Potentially Rural: Tracts that may qualify and have some connection to larger towns.
• - Insufficient Data: A limited number of tracts where data is not yet available for assessment.

As the landscape for Opportunity Zones evolves, this mapping tool will be updated with new data leading up to the designation timeline. The nomination process for the next set of OZs officially kicks off on July 1, 2026, allowing governors a 120-day window to recommend low-income tracts. Subsequently, the U.S. Treasury has an up to 60-day timeframe to make final designations.

Changes in Eligibility Criteria

The criteria for designating OZs have become more rigorous for this upcoming round, diverging from the broader parameters established during their initial round in 2018. This shift means that community stakeholders must be vigilant and proactively use the new OZ 2.0 Mapping Tool to understand the updated landscape and prepare their nominations accordingly.

As the mapping tool gains traction, it is anticipated that users will begin to explore how their communities may be impacted positively by the permanence of the Opportunity Zones initiative. With increasing interest in community revitalization and economic development, the tool serves as a pivotal resource in navigating the complexities of OZ eligibility.

About Novogradac

Established for nearly 36 years, Novogradac is a leading firm with over 1,000 employees and partners across more than 25 offices nationwide. Their expertise spans various areas including taxation, auditing, consulting in Opportunity Zones, affordable housing, community development, and renewable energy. For more information about Novogradac and its services, visit www.novoco.com or contact them at (415) 356-8000.