Illinois has received federal approval for 240 census tracts under the Opportunity Zones 2.0 program, establishing new areas eligible for tax incentives intended to attract private investment, support business development and encourage economic growth.
Gov. JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced that the U.S. Department of the Treasury approved the state’s selections following a statewide nomination and evaluation process.
The new designations are expected to take effect in January.
Nearly 90 percent of the approved census tracts qualify as underserved areas under DCEO’s criteria, while 32.5 percent, or 78 tracts, qualify as Rural Opportunity Zones eligible for enhanced benefits under the updated federal program.
The Opportunity Zones program provides federal tax incentives to encourage long-term private investment in economically distressed communities.
Originally established in 2017, the program was updated through federal legislation enacted in 2025, creating the Opportunity Zones 2.0 framework and additional incentives for qualifying rural investments.
The designations can be used to attract capital for projects involving housing development, commercial redevelopment, business expansion and other economic development activities.
DCEO received and reviewed more than 500 census tract nominations from economic development organizations, businesses, local elected officials and individuals representing all 10 of Illinois’ economic development regions.
The department evaluated eligible areas using economic and demographic indicators, including local economic conditions, housing needs, workforce characteristics, investment potential and existing development opportunities.
Officials also considered regional economic priorities and opportunities to coordinate Opportunity Zone investments with other public and private funding sources.
The selection process incorporated feedback from local governments, community leaders, developers, investors and economic development organizations.
DCEO Director Kristin Richards said the department sought to identify communities where federal tax incentives could complement existing economic development strategies.
The inclusion of 78 Rural Opportunity Zones provides additional opportunities for investment in less densely populated communities.
Under the updated federal framework, qualifying rural investments can receive enhanced tax benefits compared with investments in other designated areas.
The designation of a census tract does not provide direct federal funding to local governments or guarantee that development will occur. Instead, the program offers tax incentives to eligible investors who direct capital into qualifying projects through Qualified Opportunity Funds.
With federal approval secured, DCEO plans to continue working with local governments, investors, developers and economic development organizations to promote the designated areas and connect potential investment with community priorities.
The department will also help communities identify opportunities to coordinate Opportunity Zone projects with other economic development programs and financing tools.
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