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.