Opportunity Zones in California
Program Overview
The Opportunity Zone (OZ) Program was established under the Tax Cuts and Jobs Act of 2017 to encourage the reinvestment of capital gains into economically distressed communities. The program offers preferential federal tax treatment for capital gains invested in qualified projects located within designated low-income census tracts.
Eligible investments may include new real estate construction, rehabilitation of vacant or underutilized properties, equity investments in operating businesses, and infrastructure or energy-related projects, among others. The Opportunity Zone incentive is designed to reward long-term, patient capital that generates sustained economic growth, job creation, and community revitalization in historically underserved areas.
The Opportunity Zone Program was originally scheduled to sunset on December 31, 2026. With the passage of Public Law 119-2 on July 4, 2025, the program is now a permanent part of the federal tax code.
As part of this legislation, a new round of Opportunity Zone census tract designations—referred to as “Opportunity Zones 2.0”—was introduced.
What to know:
- January 1, 2027: The U.S. Department of the Treasury will certify nominations, and the new census tract map takes effect
- December 31, 2028: Original Opportunity Zones 1.0 census tracts will sunset
- OZ 2.0 Duration: Designations will remain in place for 10 years
- Future updates: Opportunity Zones will be refreshed every 10 years going forward
California’s Opportunity Zones 2.0 Designated Census Tracts
The U.S. Department of Treasury has certified the Governor’s nomination of 620 census tracts encompassing an estimated 2.6 million people in 55 counties. The designated tracts will become Opportunity Zones on January 1, 2027, and remain in effect for 10 years.
- Download an Excel workbook of the OZ 2.0 designated tracts for California here.
- View an interactive map of the OZ 2.0 designated tracts for California here.
- Download a large, non-interactive map (28 inches x 40 inches) of the OZ 2.0 designated tracts here.
How the Tracts Were Selected
The Department of Finance and GO-Biz jointly oversaw the selection process. Finance scored all 2,479 eligible tracts on poverty, median family income, renter cost burden, crowding, and unemployment, using Census Bureau 2020-2024 American Community Survey 5-year estimates. GO-Biz evaluated the 1,232 tract recommendations submitted through the Local Authority Recommendation Form for developmental readiness and local economic impact. Together, these produced an initial list of 560 tracts, published for public comment on August 3, 2026.
Through August 28, 2026, Finance received 3,754 public comments on 863 individual tracts. The final list of 620 tracts balances the Finance score, local recommendations, and public comments.
California’s Opportunity Zones 2.0 Local Authority Recommendation Process and Public Comment Period
Thank you to all who participated in the Local Authority Recommendation Form submission process and the Public Comment Period. These processes are officially closed. We appreciate your time and effort in providing valuable input.
OZ 2.0 Webinars
Each informational webinar provides an overview of how the Opportunity Zones 2.0 program will work and how local communities can leverage the incentive to achieve a range of economic development objectives.
- May 19, 2026: Webinar #1: Updates & Best Practices for Opportunity Zone Designation – View Recording | View PDF
- May 26, 2026: Webinar #2: Attracting & Deploying Opportunity Zone Investment – View Recording | View PDF
- June 2, 2026: Webinar #3: Identify Optimal OZ 2.0 Census Tracts – View Recording | View PDF
- June 24, 2026: Webinar #4: Opportunity Zones 2.0 Tribal Communities & Partners Webinar – View Recording | View PDF
Contact
For questions regarding California’s Opportunity Zones 2.0 selection process, please submit an inquiry through the GO-Biz Help Center
