South Carolina Governor Submitted New Opportunity Zones

The proposed federal tax incentives for distressed areas could impact future regional investment across three counties.

Updated on Sept. 24, 2026 in Regional Economics

Isometric editorial illustration of steel structural beams and foundation blocks arranged in a grid, representing economic development policy. — South Carolina Governor Henry McMaster has nominated new federal Opportunity Zones to drive investment and redevelopment projects across York, Lancaster, and Chester counties. AI Illustration. Upload story photo >

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Governor Henry McMaster has submitted new nominations for federal opportunity zones, a program designed to spur investment in distressed areas. If approved, these zones will enable investors to redirect capital gains toward redevelopment projects across York, Lancaster, and Chester counties.

Why it matters

The opportunity zone program incentivizes developers to fund projects in lower-income areas to stimulate local economic growth. These designations are updated every 10 years to ensure they align with the needs of shifting regional economies.

Past opportunity zones in Rock Hill previously generated over $500 million in development. The current proposal encompasses 52,774 acres in Chester County, 2,620 acres in Lancaster County, and over 8,300 acres across two sites in York County.

The players

Henry McMaster

The Governor of South Carolina who acts as the primary authority in submitting state nominations for federal economic incentive programs.

U.S. Treasury

The federal agency responsible for reviewing state proposals and setting the final administrative criteria for tax-incentivized opportunity zones.

The details

Investors can place capital gains into special funds earmarked for redevelopment within these designated areas. This mechanism provides a tax incentive for those moving money into distressed or low-income zones. The U.S. Treasury is responsible for reviewing and authorizing these nominations before they can officially take effect next year.

2017: Initial opportunity zone push began.
2025: One Big Beautiful Bill Act signed into law.
September 2026: Governor McMaster submitted new opportunity zone nominations.
2027: New opportunity zones expected to take effect.

Money Landscape

The nomination process follows the permanence established by the One Big Beautiful Bill Act, which dictates how states update these incentive areas every decade. This cycle marks a continuation of federal efforts to use tax policy as a tool for driving long-term investment into distressed regions.

Property owners and businesses within the proposed zones may see an increase in development interest if the U.S. Treasury approves these designations. Investors interested in how these tax-advantaged funds fit into a broader portfolio should consult with a qualified financial or tax professional.

The takeaway

Opportunity zones provide a significant tax-incentive mechanism for redevelopment that can fundamentally change the investment profile of a local area. Residents should monitor the official status of these nominations in 2027 to understand if their property or business district falls within the new boundaries.