Baker-Polito Administration Submit Opportunity Zone Designations

On April 19, Governor Baker submitted the state's Opportunity Zone designations to the U.S. Treasury Department to encourage long-term investment in eligible Massachusetts communities. Created as part of the federal Tax Cuts and Jobs Act of 2017, the Opportunity Zone program presents an opportunity for private, tax-free investment into areas of economic need.

The Opportunity Zone program provides a federal tax incentive for taxpayers who reinvest unrealized capital gains into "Opportunity Funds," which are specialized vehicles dedicated to investing in low-income areas called "Opportunity Zones." The zones themselves are to be comprised of low-income community census tracts and designated by governors in every state.

Of Massachusetts’ 1,478 census tracts, 581 tracts were determined by the U.S. Department of Treasury to be eligible to be considered for Opportunity Zone designation. Governor Baker recommended 138 Opportunity Zones, the maximum number for Massachusetts.

The administration engaged municipal leaders and other key stakeholders in the communities with eligible tracts in the development of the state designation process, opening the application process on March 9. Applicant municipalities explained why their nominated tracts offer attractive investment opportunities, what level of planning they had already completed, and key demographic data such as median family income, unemployment, and poverty rates – both in the nominated tract and in the wider community. 

Of the 138 designated tracts submitted for federal approval, 32 tracts are located in the 10 communities with the lowest median family income (MFI) in the state; 48 percent of the tracts are from “Gateway Cities,” and rural communities make up 18 percent of the communities with designated tracts.

The U.S. Treasury has committed to responding to state submissions within 30 days.

For the Governor's press release along with a list of communities in Massachusetts with nominated Opportunity Zones, please click here.