26 USC 1400Z-1 - Designation

U.S Code last checked for updates: Sep 07, 2025

§ 1400Z–1.

Designation

(a)

Qualified opportunity zone defined

(b)

Designation

(1)

In general

For purposes of subsection (a), a population census tract that is a low-income community is designated as a qualified opportunity zone if—

(A)

not later than the end of the determination period, the chief executive officer of the State in which the tract is located—

(i)

nominates the tract for designation as a qualified opportunity zone, and

(ii)

notifies the Secretary in writing of such nomination, and

(B)

the Secretary certifies such nomination and designates such tract as a qualified opportunity zone before the end of the consideration period.

(2)

Extension of periods

(3)

Special rule for Puerto Rico

(c)

Other definitions

For purposes of this section—

(1)

Low-income communities

The term “low-income community” means any population census tract if—

(A)

such population census tract has a median family income that—

(i)

in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or

(ii)

in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or

(B)

such population census tract—

(i)

has a poverty rate of at least 20 percent, and

(ii)

has a median family income that—

(I)

in the case of a population census tract not located within a metropolitan area, does not exceed 125 percent of the statewide median family income, or

(II)

in the case of a population census tract located within a metropolitan area, does not exceed 125 percent of the metropolitan area median family income.

(2)

Definition of periods

(A)

Consideration period

(B)

Determination period

(C)

Decennial determination date

The term “decennial determination date” means—

(i)

July 1, 2026, and

(ii)

each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph.

(3)

State

(d)

Number of designations

(1)

In general

(2)

Exception

(e)

Period for which designation is in effect

(1)

In general

(2)

Applicable start date

(Added Pub. L. 115–97, title I, § 13823(a), Dec. 22, 2017, 131 Stat. 2183; amended Pub. L. 115–123, div. D, title II, § 41115, Feb. 9, 2018, 132 Stat. 161; Pub. L. 119–21, title VII, § 70421(a)(1)–(4), (b)(1)–(3), July 4, 2025, 139 Stat. 223, 224.)

cite as: 26 USC 1400Z-1