REBIC – Opportunity Zones 2.0

From REBIC - 6/2/2026

 

During yesterday’s meeting of the Charlotte City Council Economic Development and Workforce Committee, staff presented on Opportunity Zones and discussed changes to the program as it moves to a new phase —2.0. For those who know about this initiative, but need a quick refresher on the details, here are a few quick points:

• It is a federal tax program created by the 2017 Tax Cuts and Jobs Act to encourage long-term private investments in low-income census tracts.
• The tax incentive operates through Qualified Opportunity Funds (QOFs), which pool investor capital and deploy it into eligible investments/qualifying activities within OZs.
• Qualifying activities include: real estate development, multi-family housing, rehabilitation of vacant properties, local operating businesses, manufacturing, energy projects, and mixed-use developments.
• Since the inception of the program, estimates indicate more than $100 billion has been invested in Opportunity Zones, with more than $240 million specifically in North Carolina.

Here is a list of tax incentives that come with the program:

• Temporary deferral of capital gains taxes by reinvesting eligible gains into a Qualified Opportunity Fund
• Reduction of deferred taxable gain through holding-period-based basis adjustments and enhanced incentives for certain qualifying investments
• Exclusion of new capital gains generated from Opportunity Fund investments held for at least 10 years.

Following the presentation and a discussion between committee members, a motion was made and approved to direct staff to continue the process of submitting recommended and eligible census tracks to the North Carolina Department of Commerce for consideration. The state can then nominate those tracts to the U.S. Department of the Treasury for designation as Qualified Opportunity Zones.

For a look at the full presentation as well as a glimpse of the areas under consideration, please explore below:

Opportunity Zones Presentation

Charlotte City Council Economic Development & Workforce Committee Video
(Discussion starts at around 2:10:20)

Rob’s Take: Opportunity Zones provide economic benefits for communities by injecting long-term capital, the revitalization of underutilized properties, increased housing supply, and infrastructure upgrades. What was fascinating about the discussion was the balancing act several councilmembers attempted between criticizing the program due to concerns about displacement and simultaneously arguing for portions of their districts to be included. I guess that’s Charlotte politics in 2026. Ultimately the motion passed and the decision moves to the state and then ultimately, the federal government.