Opportunity Zones were created in 2017 as an economic development tool to encourage investors to locate in identified census tracts thus strengthening local workforces and infrastructure and potentially culminating in stronger county budgets.
The One Big Beautiful Bill Act made the program permanent and outlined various changes. The updated program places more emphasis on rural areas to give smaller counties a better opportunity to compete for major capital projects and private investments.
States may nominate new zones on a recurring basis every 10 years, and county governments now can apply for the latest update.
The Kentucky Cabinet for Economic Development currently is collecting recommendations for eligible census tracts from local partners (such as judge/executives). The governor will then review the recommendations and submit the nominations to the U.S. Treasury.
KACo hosted a webinar with the cabinet that highlighted key changes from Opportunity Zones 1.0 to 2.0, walking through the new application process for tract designation and outlining the criteria and requirements for submission.
Evaluation criteria include:
- Infrastructure and public safety access
- Site readiness
- Alignment with statewide and regional strategy
- Market demand and investment potential
- Highest and best use rational
- Workforce availability and training alignment
- Local financial and policy commitments
- Long-term community and economic impact
The application is live on the cabinet’s website along with numerous resources and the ability to ask questions: Kentucky Opportunity Zones | Kentucky Cabinet for Economic Development
Counties may submit multiple applications, which are due by May 29, 2026. The new zones will go into effect Jan. 1, 2027.
Access the webinar recording here: https://youtu.be/9X-oROD-6LA?si=Mzz6S7A4yEVzYmjX.
