Texas Nominated 90 New Opportunity Zones

The state's new designations for project-based tax breaks could significantly shift investment toward urban tracts.

Updated on Oct. 1, 2026 in Commercial

Texas Nominated 90 New Opportunity Zones

Live Poll

Do you believe opportunity zone tax incentives provide meaningful economic benefits to your local community?

Texas officials submitted nominations for 90 new federal Opportunity Zone 2.0 tracts on September 4, 2026. These designations aim to draw capital into underinvested areas by offering a 10-year project-based tax break.

Why it matters

The program incentivizes development by encouraging equity investment in census tracts where new projects can generate jobs and grow the local tax base. This shift focuses on urban areas, potentially altering regional commercial real estate development patterns.

Texas attracted $8 billion in investment through the initial opportunity zone program, which saw 77% of U.S. tracts receive funding by the end of 2024. Dallas could see an additional $250 million to $300 million in annual equity investment over the next decade.

The details

The Opportunity Zone 2.0 program provides investors a rolling 10-year tax break for funding real estate projects in designated tracts. By shifting these designations from rural to urban census tracts, officials aim to concentrate capital where job creation and tax base expansion are most viable. Over 90% of funds from the original program supported real estate projects, a trend expected to continue as investment is projected to double in the 608 total tracts.

2017: The Tax Cuts and Jobs Act established the original program.
End of 2024: 77% of U.S. designated tracts had received investment.
September 4, 2026: Texas submitted its new opportunity zone nominations.
Next 10 years: Projections indicate a potential doubling of investment in the nominated tracts.

Employment
Sept. 18
Texas Added 159,400 Nonfarm Jobs Over Past Year
Residential
Oct. 1
Texas Taxable Property Values Projected to Rise
Taxes
Sept. 30
Texas Eased Tax Rules on Marketplace Fees

Money Landscape

The Opportunity Zone program was originally established by the 2017 Tax Cuts and Jobs Act as a temporary measure to spur development. This new round of nominations follows the One Big Beautiful Bill Act, which made the program permanent, signaling a long-term commitment to this specific tax-incentive model.

Investors and local business owners should watch for federal approval of these zones, as they could serve as catalysts for new commercial developments in their communities. Consult with a qualified tax professional to understand how the 10-year project-based tax break aligns with your specific financial planning goals.

The takeaway

The nomination of these tracts underscores a strategic shift toward urban development as the primary focus for future tax-advantaged projects. Property owners and developers should monitor whether their census tracts receive final designation, as this status can influence long-term property values and local commercial activity.