Ferguson Nominated 99 Washington Sites for Opportunity Zones
Investors and developers may soon gain tax incentives for projects in Bellingham and Salish Village.
Updated on Oct. 9, 2026 in Regional Economics
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Governor Bob Ferguson has submitted 99 Washington state locations for the federal Opportunity Zones 2.0 program, which provides tax incentives for capital investment. If approved, the designations will target economically distressed areas for new development beginning in 2027.
Why it matters
The program encourages real estate and business investment in areas with low median income and high poverty metrics. For operators, these zones lower the cost of capital for expansion into historically underserved districts.
The state submitted 99 sites for potential designation, including a 160-acre development plot at Salish Village. Each approved zone would provide tax incentives to investors and financial institutions for a duration of 10 years.
The players
Bob Ferguson
The current Governor of Washington responsible for overseeing state economic development and federal program nominations.
U.S. Treasury Department
The federal agency tasked with managing tax policy, financial reporting, and the final certification of regional development zones.
The details
Nominations are currently pending review by the U.S. Treasury Department to confirm eligibility. If certified, these designations unlock tax benefits designed to spur private sector participation in commercial and residential projects. For developers in hubs like Bellingham, this program structure effectively subsidizes long-term development costs in areas identified as having high poverty and low income levels.
Timeline
October 8, 2026: Governor Ferguson announced the state's nominations.
2017: The original Opportunity Zones program was created.
January 1, 2027: The new designations are expected to take effect upon federal approval.
Market Landscape
The proposal expands upon the 2017 Opportunity Zones program by introducing a new cycle of tax-advantaged development zones. This move aligns with broader federal efforts to utilize private capital as a primary engine for urban and tribal land economic renewal.
Business owners and developers should monitor the U.S. Treasury certification process to determine if their prospective project sites qualify for the 10-year tax incentive window. Consult with your tax counsel regarding whether current or planned capital expenditures align with the requirements for new zone designations.
The takeaway
These nominations signal a potential shift in capital flow toward the designated Bellingham and Salish Village corridors. Operators should track the final certification status of these sites to determine if upcoming facility investments can qualify for long-term tax deferment.
What happens next
The U.S. Treasury Department is expected to review the nominations before the target start date of January 1, 2027.
Further reading
For more on local business development initiatives, visit the Regional Economics section.
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