Washington state selects 99 Opportunity Zones to attract private investment

OLYMPIA, Wash. — Governor Bob Ferguson announced Thursday that 99 low-income and rural communities across Washington state have been selected as nominees for the federal Opportunity Zones 2.0 program, designed to encourage private investment in economically distressed areas.

The program offers tax incentives to investors, developers and financial institutions who fund real estate development and businesses in designated zones.

The first generation spurred an estimated $100 billion in private investments nationwide. Of the 99 nominated areas selected from 152 applications, 36 represent rural communities.

“Washington is a great place to do business,” Governor Ferguson said. “Opportunity Zones help shine a light on communities that have great potential for investors.”

Investors holding a Qualified Rural Opportunity Fund investment for five years receive a 30% reduction in taxable value, compared to 10% for non-rural zones.

Rural properties require capital improvements equal to only 50% of their adjusted basis to qualify for tax benefits, down from 100%.

The Peyton Lofts in Spokane is converting a 135-year-old office building into a 96-unit residential community by 2027.

The Koz on MLK in Tacoma, finished in 2022, houses 161 units.

Marina Square in Bremerton, completed in 2023, features 270 residential units and 13,000 square feet of retail space.

View the full list of nominations and program details on the Summary OZ Dashboard.