Indiana Submitted New Opportunity Zone Nominations
The state has nominated 61 cities for federal tax incentives that could draw new investment to local neighborhoods.
Updated on Oct. 8, 2026 in Regional Economics
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Indiana officially submitted its nominations for new federal Opportunity Zones on September 25, covering 61 cities and towns across 47 counties. These nominations are designed to attract private capital to lower-income areas through federal tax deferral programs.
Why it matters
The program encourages long-term private investment in designated lower-income communities by allowing taxpayers to defer capital gains when reinvesting through qualified funds. Federal certification of these Indiana sites could follow by late December.
The nomination covers 350 public recommendations across 234 unique eligible tracts. Nationally, Qualified Opportunity Funds held over $108 billion in assets at the end of 2024.
The players
U.S. Treasury
The federal agency responsible for certifying Opportunity Zone nominations and overseeing tax incentive programs.
The details
Taxpayers participate by reinvesting capital gains into Qualified Opportunity Funds, which are then used to finance eligible business or property developments in designated zones. This process allows investors to defer tax liabilities on their gains. The state submission incorporated 350 public recommendations to identify the most impactful areas for economic growth.
Timeline
End of 2024: Qualified Opportunity Funds held $108 billion in assets.
Sept. 25, 2026: Indiana submitted its Opportunity Zone nominations.
Dec. 28, 2026: The federal Treasury could finalize certification of the zones.
Money Landscape
This round of nominations builds upon the federal program made permanent by the 2025 One Big Beautiful Bill Act. It follows an initial wave that saw over 8,700 zones established nationwide to spur regional economic development.
If you hold capital gains, you may eventually be able to use qualified funds to defer taxes while investing in designated Indiana projects. Consult with a qualified tax professional to evaluate if such investments align with your long-term financial strategy once certifications are finalized.
The takeaway
The nomination process aims to channel private wealth into local development projects across Indiana. Monitor for federal certification announcements expected as early as December 28.
Further reading
Learn more about the state's economic development tools in our Regional Economics section.
Source note: This article includes information reported by Axios.
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