DED to Open Applications on March 2nd through the Federal Opportunity Zones Program

The Nebraska Department of Economic Development (DED) will open applications through the Federal Opportunity Zones Program on Monday, March 2, 2026. A link to apply will be made available at https://opportunity.nebraska.gov/programs/business/opportunity-zones/.

DED will accept applications for eligible census tracts to be designated as Opportunity Zones through Friday, May 1, 2026.

What Is the Federal Opportunity Zones Program?

Originally established by Congress through the Tax Cuts and Jobs Act of 2017, the Federal Opportunity Zones Program was made permanent with the passage of the One Big Beautiful Bill Act (OBBBA) of 2025. The purpose of the program is to promote investment and drive economic growth in low-income and/or economically disadvantaged communities.

Investments made through certified investment vehicles created as “Opportunity Funds” are used to spur economic growth in designated Opportunity Zones—for example, by supporting new businesses or real estate development. Parties who invest in Opportunity Funds can benefit from tax incentives, such as deferrals on capital gains tax. An Opportunity Fund may be organized as a corporation or partnership whose assets comprise at least 90% qualified Opportunity Zone assets, representing an investment in Opportunity Zones.

Distinct from the original provisions in the Tax Cuts and Jobs Act of 2017, the OBBBA provides higher tax incentives and lower investment hurdles for rural census tracts compared to non-rural tracts through Qualified Rural Opportunity Funds. This distinction encourages greater utilization of the Opportunity Zone program in rural areas of Nebraska and the country.

What Locations Are Eligible for Designation as Opportunity Zones?

Under federal rules, each state is allowed to nominate as an Opportunity Zone (a) 25 eligible census tracts or (b) 25% of the total eligible census tracts within the state—whichever is greater.

Nebraska has 112 census tracts that meet the federal criteria to be eligible for designation as Opportunity Zones. A map of these eligible census tracts is available here. A list of the eligible census tracts is available here.

Who Can Apply?

Each application proposing a census tract for nomination as an Opportunity Zone must be made by the Chief Elected Official of the submitting city or county, or by an official representative acting on his/her behalf. Letters of recommendation from business leaders, chambers of commerce, and other relevant bodies may be included in the application.

Competitive applications will demonstrate the investment readiness, community benefit, and economic need that make a census tract particularly favorable for nomination as an Opportunity Zone.

How Will Nebraska’s Opportunity Zones Be Designated

Following a review of applications, DED will refer its recommendations to Governor Jim Pillen for review and approval. 

The U.S. Treasury Department will begin accepting Opportunity Zone nominations from governors on July 1, 2026, and continue for 90 days. Census tracts that are approved by the Treasury Department will be designated as Opportunity Zones beginning January 1, 2027. Opportunity Zones will be redesignated every 10 years.

More Information about the Federal Opportunity Zones Program

For additional information about the Federal Opportunity Zones Program in Nebraska, visit https://opportunity.nebraska.gov/programs/business/opportunity-zones/.

Please direct questions about the program to Ben Kresl at ded.opportunityzones@nebraska.gov or 402-471-3063.