In 2017, the Opportunity Zone program was created to incentivize investors with capital gains from stocks, business, real estate, etc. to invest in designated low-income communities. In return, investors receive capital gains tax deferral, and so long as certain requirements are met, can receive partial forgiveness on the original gain and tax-free gains on the Opportunity Zone investment itself. The One Big Beautiful Bill made the Opportunity Zone program permanent.
On, or around July 1, 2026, Governor Beshear will make the second round of Opportunity Zone census tract recommendations for Kentucky to the federal government. Selected census tracts will keep their Opportunity Zone designation for ten years. Communities with Opportunity Zone census tracts will have the opportunity to compete for and benefit from Opportunity Zone investment in their community.
The census tract designation is a competitive process. To be considered, communities must apply to the Ke