Opportunity Zones

The Tax Cuts and Jobs Act of 2017 establishes a new federal tax incentive to encourage long-term investments in certain low-income communities newly designated as Opportunity Zones. Through Opportunity Funds, private investment within a designated Opportunity Zone may earn tax relief on both the capital gains invested in the funds and those generated through the investment by the fund.

What Are Opportunity Zones?

Each state's Governor may nominate a minimum of 25 total eligible census tracts but no more than 25% of the total number of eligible census tracts based on the 2011-15 ACS census data, which are tracts defined as a "Low Income Community" (LIC) by the federal New Market Tax Credit program. Eligible tracts are those with a poverty rate of at least 20% or with median family incomes that do not exceed 80% of area median income.

Oregon had up to 86 census tracts that could be nominated as Opportunity Zones.

What Are Opportunity Funds?

A qualified Opportunity Fund is the required vehicle to invest into Opportunity Zones. As certified by the U.S. Treasury, at least 90% of an Opportunity Fund's holdings need to take one of two forms:

  1. Direct ownership in business property that the fund essentially runs itself, or
  2. Equity stake (company issued stock or partnership interest) in qualified opportunity zone businesses.

Qualified Opportunity Zone business property needs to be newly acquired from unrelated parties and either used for the first time or substantially improved for use inside an Opportunity Zone.

Nomination Process

Governors were given 90 days from the signing of the tax law (Dec. 22, 2017) to nominate their tracts. A single, 30-day extension was available and granted to Oregon. The deadline to submit nominations to the U.S. Department of the Treasury was April 20, and the state of Oregon submitted 86 zones for consideration. The U.S. Department of the Treasury adopted all of Oregon's nominated zones on May 18, 2018.

The U. S. Department of the Treasury has 30-60 days to approve nominated census tracts.

Selection Process

Business Oregon solicited, and received input from 300+ interested parties through our agency website.

The state of Oregon partnered directly with the Oregon Legislature, Association of Oregon Counties, League of Oregon Cities, and each of Oregon's nine federally-recognized Tribal Governments to further solicit local and tribal government feedback. Outreach included dozens of meetings with local economic development groups, developers, housing specialists, investors, community lenders, and foundations, as well as to individual communities.

Tracts were then also looked at through a quantitative lens of both opportunity of economic growth, and need relating to employment, demographics, and poverty.

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Click the table column heads to resort the table by that data.

Community/Basic Location County Tract #
Baker City Baker 9505
South Corvallis Benton 1
Corvallis (downtown) Benton 106
Clackamas Clackamas 221.07
Clackamas (South of Hwy 212) Clackamas 221.08
Clackamas (Town Center) Clackamas 222.01
Wilsonville Clackamas 244
Oregon City Clackamas 225
Willamette Falls Clackamas 224
Astoria—Tongue Point Clatsop 9503
St. Helens Columbia 9707
North Bend (along Hwy 101) Coos 3
Coos Bay (Empire) Coos 5.04
Prineville and Powell Butte Crook 9503
Port Orford Curry 9501
Redmond Deschutes 9
Bend (Old Mill area) Deschutes 15
Bend (Central Business District) Deschutes 16
Bend (East Bend) Deschutes 18
Roseburg Douglas 1300
Reedsport (including Gardiner) Douglas 100
Burns and Hines Harney 9601
Hood River Hood River 9503
Cascade Locks Hood River 9501
Medford (downtown) Jackson 1
Medford Jackson 12
White City (North of Medford) Jackson 13.01
Warm Springs Jefferson 9400
Madras (East side) Jefferson 9602.02
Grants Pass (downtown) Josephine 3605
Chiloquin Klamath 9702
Klamath Falls (downtown) Klamath 9718
Lakeview Lake 9602
Eugene (downtown, 5th St area) Lane 39
Eugene (Bethel) Lane 43
Springfield (downtown) Lane 33.02
Eugene (UofO and EWEB property) Lane 37
Springfield (Glenwood) Lane 36
Lincoln City Lincoln 9503.04
Millersburg Linn 201
Albany (downtown) Linn 204
Ontario Malheur 9703
Nyssa Malheur 9705
Salem (downtown) Marion 2
Salem (airport) Marion 10
Salem (downtown, North waterfront) Marion 3
Woodburn (East side) Marion 103.05
Woodburn (West of I-5) Marion 103.03
Portland (Innovation Quadrant) Multnomah 11.01
Portland (Inner East Side) Multnomah 21
Portland (Lower Albina) Multnomah 23.03
Portland (Pearl Dist) Multnomah 51
Portland (PSU) Multnomah 56
Port of Portland area Multnomah 73
Gateway Multnomah 81
Gateway Multnomah 82.01
Gresham Multnomah 100.01
Portland (downtown) Multnomah 106
Rockwood Multnomah 96.03
Rockwood Multnomah 96.04
Rockwood Multnomah 98.01
Rosewood Multnomah 97.01
Fairview Multnomah 101
Fairview/Wood Village Multnomah 103.04
South Waterfront Multnomah 57
West Salem Polk 51
Dallas Polk 202.02
Sherman County Sherman 9501
Garibaldi Tillamook 9602
Confederated Tribes of the Umatilla Indian Reservation Umatilla 9400
Milton-Freewater Umatilla 9502
Hermiston Umatilla 9510
La Grande (East side) Union 9708
The Dalles Wasco 9704
The Dalles Wasco 9705
Tigard Washington 307
Tigard (Washington Sq) Washington 309
Beaverton Washington 313
Beaverton Washington 314.02
Tualatin Washington 320.03
Tualatin Washington 320.05
Hillsboro Washington 325.01
Forest Grove Washington 332
McMinnville Yamhill 306.01
Grand Ronde Yamhill 305.02
Newberg Yamhill 302.02

1 Disclaimer from Business Oregon: The Opportunity Zone Analysis Map is for public education and illustrative purposes only. Every effort has been made to correctly use the best, most up-to-date data, but time constraints, etc., mean the state cannot warrant for complete accuracy, and under no circumstances is this tool warranted for investment, tax planning, or any other reason. The information contained should not be used as the basis of any decision with financial or other consequences.