Utah has nominated 37 census tracts for the next generation of federal Opportunity Zones, selecting the maximum number permitted from 147 eligible areas. The governor's Sept. 24 list includes 27 urban tracts and 10 rural tracts, with federal certification expected in December.
The selections would shape where investors can use federal tax incentives tied to Qualified Opportunity Funds beginning Jan. 1, 2027. The program encourages investors to reinvest capital gains in designated communities, but a designation does not itself appropriate public money or guarantee a project. It creates a tax-advantaged investment geography whose results will depend on private capital, local plans and federal approval.
Utah's largest concentration is in Salt Lake County, which has 11 recommended tracts. Utah County has seven, while Cache and Weber counties each have three. Davis and Iron counties each have two. The remaining recommendations extend across Box Elder, Carbon, Duchesne, Grand, Piute, Sanpete, Tooele, Uintah and Washington counties, giving the list a statewide reach rather than limiting it to the Wasatch Front.
The Governor's Office of Economic Development said it balanced local priorities, investment prospects and geography. Its program page says eligible tracts generally had to meet either a poverty rate of at least 20% or a median family income no greater than 70% of the statewide or metropolitan-area median. Utah could recommend 25% of the 147 federally eligible tracts, producing the 37-tract cap.
State officials used employment, population, capital-flow, infrastructure, labor-market and demographic data, along with feedback from municipalities, counties, businesses, developers and economic-development groups. Two statewide webinars and a survey gave local officials and private stakeholders a channel to identify priority areas and projects. The final mix tracks the eligible pool: 117 of the candidate tracts were urban and 30 were rural.
The timing reflects a new federal designation cycle. A July Treasury notice said governors could nominate eligible communities for zones that take effect in 2027, and that redesignation will occur once every 10 years. Treasury identified 25,332 eligible tracts nationwide, including 8,334 qualifying for enhanced rural benefits.
Those rural provisions are important for Utah's 10 rural nominees. State guidance says a five-year investment in a Qualified Rural Opportunity Fund can receive a 30% basis step-up under the revised program. Investors still must meet federal rules, and communities will need projects capable of attracting capital rather than relying on designation alone.
The next decisive step is Treasury certification in December. Until then, Utah's 37 tracts are recommendations rather than final zones. The list is consequential, but remains one step short of conferring the federal tax treatment investors would use. Local governments, developers and residents can use the published tract numbers and map to identify affected neighborhoods, evaluate proposed investments and prepare for the rules scheduled to begin Jan. 1.
