Fostering Statewide Economic Growth: U.S. Department of the Treasury Approves All 91 Colorado Opportunity Zones for Federal Designation

Zones will Encourage Investment and Business Expansion Across the State

DENVER - Today, Governor Jared Polis announced that the U.S. Department of the Treasury approved all 91 geographic areas submitted for federal designation as new opportunity zones through the Opportunity Zone (OZ) initiative, a federal incentive that encourages long-term investments in designated low-income communities. Opportunity zones offer a powerful tool to help rural and urban communities attract new development and investment capital, strengthening economies across the state. The 91 newly approved opportunity zones will go live for investment on January 1, 2027.

"This complete approval is a major milestone for economic growth in Colorado. Successful designation of our new opportunity zones now has the potential to generate over $4 billion in investments in some of our Colorado communities that need it the most, improving infrastructure, building new housing and manufacturing, and growing businesses across the state," said Governor Polis.

In September, the State of Colorado submitted the 91 zones for approval following a several-month stakeholder engagement process led by the Business Funding & Incentives division of the Colorado Office of Economic Development and International Trade (OEDIT). OEDIT solicited input from communities across the state to support the Governor in nominating low-income census tracts to be Opportunity Zones, including over 100 stakeholder engagement meetings, six statewide webinars, four regional in-person convenings, and a survey open to individuals across the state.

"We are delighted to have the Treasury Department approve all of the 91 Governor nominated Opportunity Zones - a true testament to the months of locally-informed collaboration that shaped our submission. By targeting long term investment opportunities from rural communities to urban centers these zones will boost the success of our communities, businesses, workers, and the families who call this state home," said Eve Lieberman, OEDIT Executive Director.

Through the OZ Program, private investors receive tax benefits for investing in real estate, infrastructure projects and operating businesses in designated zones. OEDIT will provide grant funding to Colorado communities within Opportunity Zones to help them attract investment. Guidance on these grant opportunities will be released before the end of the year and OEDIT will offer webinars and additional information on accessing these grants in early 2027. Interested communities can visit the Colorado Opportunity Zones webpage and sign up to receive email updates.

The review process prioritized the selection of zones across the state, including rural areas and regions outside of the Front Range, as well as alignment with existing efforts to diversify and grow local economies.

Approved Opportunity Zone 2.0 Tracts

Of the 91 census tracts submitted for federal designation:

• 89, or approximately 98% overlap with an Enterprise Zone.
• 47, or approximately 52%, include transit-oriented communities.
• 35, or approximately 38%, are located outside of the Front Range.
• 33, or approximately 36% overlap with a Rural Jump-Start Zone.
• 28, or approximately 31%, are located in rural communities, which qualify for increased incentives through opportunity zones. Governor Polis' rural submission exceeds the percentage of eligible rural zones (28%), prioritizing development in rural Colorado.
• 10, or approximately 11%, are located in Coal Transition Communities.
• 10, or approximately 11%, include a Creative District.
• 7 include an Innovation Hub focused on the development of emerging and new technologies.
• 6 tracts or 6.6% include a Main Street Community, prioritizing community-led downtown revitalization with support from the Colorado Department of Local Affairs (DOLA) Main Street initiative.

Federal bill H.R. 1 continued the Opportunity Zone program and made it permanent, updating eligibility requirements and benefits. The U.S. Department of the Treasury identified 362 census tracts within Colorado that met the program's eligibility requirements and invited the State to submit up to 25%, or 91, of the Census tracts for official designation.

During the first iteration of Opportunity Zones, Colorado ranked second nationally for how many Opportunity Zones received investment and eighth for total capital raised, reaching over $3.2 billion in investments, representing $534 per person, in the state through the end of 2024. Ninety-four percent of Opportunity Zones under the original effort received investment, including 95% of rural designated zones. The State estimates that the second round of OZs could exceed $4 billion in total investments in Colorado.

About the Colorado Office of Economic Development and International Trade
The Colorado Office of Economic Development and International Trade (OEDIT) works to empower all to thrive in Colorado's economy. Under the leadership of the Governor and in collaboration with economic development partners across the state, we foster a thriving business environment through funding and financial programs, training, consulting and informational resources across industries and regions. We promote economic growth and long-term job creation by recruiting, retaining, and expanding Colorado businesses and providing programs that support entrepreneurs and businesses of all sizes at every stage of growth. Our goal is to protect what makes our state a great place to live, work, start a business, raise a family, visit and retire-and make it accessible to everyone. Learn more about OEDIT.

###