Rural Opportunity Zones 2.0

State-by-state guide

Rural Opportunity Zone programs, state by state

What the federal rural Opportunity Zone rules say, where each state stands on new designations, and the state-run programs worth knowing — with a source for every claim.

Last reviewed October 15, 2026. Rules and state status are changing quickly during the 2026 designation cycle — always confirm with the official source before acting. Educational information only, not tax, legal, or investment advice. We are not a broker-dealer.

Two different things share the name

Federal Opportunity Zones (rural): a federal tax incentive for investing capital gains in designated low-income census tracts. The One, Big, Beautiful Bill made the program permanent and added extra benefits for rural zones[3][4].

Kansas Rural Opportunity Zones (ROZ): a separate state program created in 2011 to attract new residents to rural Kansas through student loan help and an income tax credit[5].

Federal rules for rural zones (apply in every state)

  • What counts as rural: any area other than a city or town with more than 50,000 people, and any urbanized area next to such a city. This applies to all states, DC and U.S. territories[1].
  • Lower improvement threshold: since July 4, 2025, property in a zone that is entirely rural must be improved by 50% of its basis instead of 100%[2].
  • Bigger step-up for rural funds: investments through the new class of qualified rural opportunity funds receive a 30% step-up in basis, compared with 10% for standard funds[3].
  • Today's map: there are 8,764 zones nationwide, and the IRS identified 3,309 of them as rural[2].
  • New map in 2027: current designations end after 2026. Governors nominate new zones starting July 1, 2026, and the new zones take effect January 1, 2027, then are redrawn every 10 years[4].
  • How many per state: governors can designate up to 25% of eligible tracts; states with fewer than 100 eligible tracts may designate 25[4]. Eligibility rules are tighter than before, so the new map is expected to be smaller[3].

Where your state stands on new zones

Each governor (or territory leader) submits their own list of nominated tracts to the U.S. Treasury, so status, deadlines and the responsible agency vary by state. To explore which tracts in your state are eligible, use HUD's official map[7]: HUD Opportunity Zones Activity Map.

For filing status by state, these independent trackers are updated frequently:

These trackers are run by private organizations and currently report different counts and deadlines. Treat them as a starting point and confirm with your governor's office or state economic development agency, which make the official announcements.

Kansas: Rural Opportunity Zones (ROZ)

  • Student loan repayment: up to $15,000 over five years, through partnerships with local sponsors. Closed to new applicants on June 30, 2026; current participants continue through their period[5].
  • Income tax credit: for people who moved into a Kansas ROZ county on or after July 1, 2011 and before January 1, 2026, after living outside Kansas for at least five years. Applies to tax years beginning before January 1, 2027[6].
  • Official contacts: Kansas Department of Commerce · Kansas Department of Revenue

Next steps

Not sure which pathway fits you? Try the program finder, read the program overview, or talk to our team.

Sources

  1. [1] IRS — Treasury, IRS guidance on rural OZ investments under the One, Big, Beautiful Bill (IR-2025-96, Sept. 30, 2025)
  2. [2] IRS — Enhanced tax incentives for QOZ investments in rural areas (Tax Tip 2026-04, Jan. 20, 2026)
  3. [3] Economic Innovation Group — Opportunity Zones 2.0: Where things stand after the OBBBA (July 11, 2025)
  4. [4] NAHB — What to know about Opportunity Zone changes in the OBBBA (Aug. 7, 2025)
  5. [5] Kansas Department of Commerce — Rural Opportunity Zones (ROZ)
  6. [6] Kansas Department of Revenue — Rural Opportunity Zone Credit
  7. [7] HUD — Opportunity Zones Activity Map (eligible tracts, 2026 cycle)