The IRS issued guidance Monday on how states and territories should nominate rural areas to be designated as qualified opportunity zones eligible for tax breaks.
The Treasury Department is developing a nomination tool that will be accessible online for states and territories to nominate census tracts, the IRS said in the guidance (Rev. Proc. 2026-12).
The guidance is the latest step toward implementing the qualified opportunity zone provisions of the 2025 tax-and-spending law. The law offers more generous short-term tax breaks in rural opportunity zones, and lowers the “substantial improvement” threshold for how much investors must add to ...