Opportunity Zone 2.0

Opportunity Zones 2.0: What It Means for Lawrence County

The federal Opportunity Zone program, which gives investors tax incentives for putting money into lower-income communities, has been made permanent and is being redesigned. A new round of zones, often called "OZ 2.0," takes effect January 1, 2027. Pennsylvania is now deciding which areas to nominate, and Lawrence County could benefit.

What Are Opportunity Zones?

Qualified Opportunity Zones are federally designated, lower-income census tracts. Investors who put capital gains into a Qualified Opportunity Fund (QOF) that invests in these areas receive tax benefits. The goal is to direct private investment toward housing, business growth, and redevelopment in communities that need it most. Since 2018, the program has driven tens of billions of dollars in private investment nationwide.

What's New in OZ 2.0

It's now permanent. Congress made the program a permanent part of the tax code in 2025, with zones redesignated every 10 years instead of a one-time map.
Stricter eligibility. Qualifying census tracts must have median family income below 70% of the area median (down from 80%), or a poverty rate of 20%+ with an income cap.
Simpler investor benefits. All investors now get the same deal: a 5-year deferral on capital gains, a 10% step-up in basis, and tax-free growth on investments held 10+ years.
A boost for rural areas. A new "Rural Opportunity Fund" category offers a 30% step-up in basis (triple the standard) and an easier improvement threshold, a potential advantage for Lawrence County's smaller towns and townships.

What This Means for Lawrence County

Lawrence County has existing Opportunity Zones from the original 2018 program, and those remain active through December 31, 2028. Pennsylvania has identified 866 census tracts statewide as eligible for the next round, but state rules only allow about 217 of those (25%) to be designated.

The state has said it will prioritize areas for housing and mixed-use development, site-ready industrial and commercial locations, downtown/main street corridors, and rural and small-community revitalization, all things found throughout Lawrence County. If local sites are chosen, it could mean new private investment in our downtowns, industrial sites, and underused properties.

Key Dates

July 1 – Sept. 30, 2026: Window for Pennsylvania to nominate new census tracts.
Fall 2026: Pennsylvania submits its final list to the U.S. Treasury.
January 1, 2027: New Opportunity Zones, and their tax benefits, take effect, lasting through 2036.

Learn More

PA DCED: Qualified Opportunity Zones
Lawrence County Available Sites & Facilities