FLAGSTAFF — Two census tracts in the City of Flagstaff have been nominated as federal Opportunity Zones under the new OZ 2.0 program. Investors who place eligible capital gains in a Qualified Opportunity Fund can defer tax on those gains for up to five years.
Opportunity Zones are low-income census tracts where federal law offers tax incentives to encourage private, long-term investment in businesses and real estate. The program was created in 2017 and made permanent in 2025, with new zones designated every ten years. Investors do not receive grants or direct payments; the benefit comes through reduced federal taxes on capital gains they reinvest in the zones.
The Arizona Commerce Authority’s Arizona Opportunity Zones Investment Conference, originally scheduled for Nov. 18–19, has been postponed. ACA continues to ask property owners to submit sites online, so they are visible to investors ahead of the Opportunity Zone designation taking effect Jan. 1, 2027.
Owners of commercial, industrial or vacant property in either tract are encouraged to take two steps now:
- Contact David Meyers, City of Flagstaff Economic Development Manager for help with the process and questions about the tracts (928-890-4496 or david.meyers@flagstaffaz.gov).
- List your property through ACA’s Opportunity Zones site so it is visible to Opportunity Zone investors. Listing is free and carries no obligation to sell or partner.
Census Tract 04005000800 and Census Tract 04005001104 are on Arizona’s list of nominated tracts. Census Tract #0800 lies south of the BNSF Railway and north of Interstate 40, from the Milton Road and Butler Avenue area east to just past the Nestlé Purina plant. Census Tract #1104 covers part of west Flagstaff, bounded by Milton Road, West Route 66, South Flagstaff Ranch Road and Interstate 40. Maps of both tracts are available at https://www.chooseflagstaff.com/opportunity-zones/.
“Both of these census tracts include sites that are ready for development. The Opportunity Zone designation gives long-term investors a reason to look closely at Flagstaff, and we want local property owners positioned to take advantage of it,” said David Meyers, Economic Development Manager.
For more information or related questions, contact David Meyers, City of Flagstaff Economic Development Manager at 928-890-4496 or david.meyers@flagstaffaz.gov.