Ohio Names 260 Tracts for Federal Investment Zones

Businesses in the designated tracts, including those in Defiance and Williams counties, may see outside investment start when the program takes effect January 1, 2027.

Updated on Nov. 6, 2026 in Economic Policy

Ohio Names 260 Tracts for Federal Investment Zones

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Ohio has named 260 census tracts as federal opportunity zones under the Opportunity Zones 2.0 program, which the U.S. Department of the Treasury approved and which takes effect January 1, 2027. Operators in the designated areas, including Defiance and Williams counties, should expect the zones to draw outside investment in housing and business expansion.

Why it matters

The designation creates federal tax incentives meant to pull outside capital into housing, business expansion, job creation and revitalization in the selected tracts. The state was able to nominate only from a pool of 1,040 eligible tracts, with 951 nominations received, so the selection reflects a competitive process rather than automatic eligibility.

Ohio's 260 newly designated tracts compare with 320 tracts across 73 counties in the first 2018 round, and 96 of the new tracts are rural. Only 515 of the state's 1,040 eligible tracts were represented by the 951 nominations submitted to the Ohio Department of Development.

The players

U.S. Department of the Treasury

The federal department that approved all 260 nominated census tracts and administers the opportunity zone tax incentives for investors.

Ohio Department of Development

The state agency that received the 951 nominations and coordinates economic development programs for Ohio businesses and communities.

The details

Opportunity zones are census tracts in which investors can receive federal tax benefits for putting capital into qualifying businesses and development projects. The Opportunity Zones 2.0 framework enacted by Congress in 2025 requires states to redesignate eligible zones every 10 years, and the newly named zones remain in effect through 2036. The DeWine Administration selected the 260 tracts from nominations gathered through a statewide survey, and all 260 were approved by the U.S. Department of the Treasury.

2017: The federal opportunity zones program was originally established.
2018: Ohio's first round of 320 opportunity zones was designated.
2025: Congress enacted the permanent Opportunity Zones 2.0 framework.
Jan. 1, 2027: The Opportunity Zones 2.0 program takes effect.
2036: The newly designated zones remain in effect through this year.

Market Landscape

The 2026 designation follows Ohio's 2018 round of 320 tracts under the federal opportunity zones program created in 2017. The narrower 260-tract selection, weighted toward rural communities, operates under the 2025 framework that requires redesignation every decade.

Operators and property owners in the designated tracts, including those in Defiance and Williams counties, should expect possible investor interest in housing and business expansion beginning when the program takes effect January 1, 2027. Businesses weighing a move or expansion into a designated tract should consult qualified tax counsel or an accountant on how the incentives would apply to their situation.

The takeaway

The main operating signal is that the new tracts are a narrower, more rural set than Ohio's 2018 round, so businesses in those areas should watch for investment activity starting in 2027. Businesses considering a move into a designated tract should have qualified tax counsel review how the incentives apply before making decisions.