Indiana Submitted New Federal Opportunity Zone Nominations
Business owners in these designated areas may soon access tax-advantaged capital for expansion and property development.
Updated on Oct. 8, 2026 in Regional Economics
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Indiana has submitted nominations for new federal Opportunity Zones covering 61 cities and towns across 47 counties. The program allows investors to defer capital gains by reinvesting them into Qualified Opportunity Funds that finance businesses and real estate in lower-income areas.
Why it matters
The program provides a mechanism for local operators to attract long-term investment capital into eligible tracts, including areas like Indianapolis's Washington Square. It creates a path for businesses to access funding that has historically supported growth in lower-income communities.
Indiana's submission includes 234 unique recommended tracts compared to the 150 zones designated in the program's first round. Nationally, Qualified Opportunity Funds held over $108 billion in assets at the end of 2024, a figure derived from more than 8,700 existing zones.
The players
Indiana
The state government responsible for identifying and nominating census tracts for federal tax incentive programs.
Treasury
The federal agency responsible for final certification of the nominated Opportunity Zones.
The details
The program operates by allowing taxpayers to roll capital gains into Qualified Opportunity Funds, which then deploy that capital into eligible businesses or property developments within nominated zones. Local businesses and property owners in the nominated 61 cities and towns may see increased interest from fund managers looking for qualified deployment opportunities. The state's submission follows a public input period that saw 350 recommendations from 88 individuals and organizations.
Timeline
End of 2024: Qualified Opportunity Funds held $108 billion in assets.
August 2026: The vision plan for Washington Square was unveiled.
Sept. 25, 2026: Indiana submitted Opportunity Zone nominations.
Dec. 28, 2026: Federal Treasury certification could occur.
Market Landscape
This nomination round follows the permanent authorization of the program under the 2025 One Big Beautiful Bill Act. It represents a significant expansion over the state's initial participation in the federal program, which previously included 150 zones.
Operators in the 61 nominated cities should monitor the Treasury's final tract certification expected by year-end. Businesses within these tracts should evaluate their eligibility for capital inflows and consult with tax counsel on how to position themselves for potential fund investments.
The takeaway
The expansion of the Opportunity Zone program offers a clear signal that state officials are prioritizing capital-intensive redevelopment in designated areas. Business owners should track the final Treasury announcement for their specific census tracts to determine if they qualify for new funding sources.
Further reading
For more on state-level development trends, see Regional Economics.
Source note: This article includes information reported by Axios.
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