Bloomington Prepares to Recommend Eligible Areas for Federal Opportunity Zone Program

The Indiana Housing and Community Development Authority
(IHCDA) recently released guidance for Indiana communities regarding the state’s
process for recommending census tracts for designation under the new federal
Opportunity Zone 2.0 program.
First created through federal legislation in 2017, Opportunity Zones are a federal
economic development tool designed to encourage long-term private investment in
eligible low-income communities through a series of tax incentives tied to qualified
investment funds. The program is intended to help attract capital to areas with
redevelopment potential by supporting projects such as housing, commercial
development, business growth, and other community investments.
Since updated federal Opportunity Zone legislation was signed into law last year, the
City of Bloomington has been actively monitoring the evolving program requirements
and preparing strategically for the state’s rollout process.
Under updated federal legislation and guidance issued by the U.S. Treasury and
Internal Revenue Service, states will begin the process this year of recommending
eligible low-income census tracts for inclusion in the next round of Opportunity Zones,
which will take effect on January 1, 2027. The revised program establishes Opportunity
Zones as a permanent federal economic development tool and creates a recurring
process for identifying communities that can benefit from long-term private investment.
The IHCDA announced that a nomination portal has opened to allow local governments,
economic development organizations, investors, developers, and other stakeholders to
provide input and recommendations as part of Indiana’s Opportunity Zone designation
process.
The City of Bloomington currently has nine eligible census tracts that may be
considered for recommendation to the Governor for submission to the U.S. Department
of the Treasury.
In anticipation of the state’s rollout, the City has already begun coordinating local
planning and strategy efforts focused on identifying redevelopment opportunities,
potential investment-ready projects, and long-term economic development priorities.
This work is being spearheaded by Jane Kupersmith and the City’s Department of
Economic and Sustainable Development in collaboration with local and regional
partners.

“Our goal is to ensure Bloomington is positioned strategically and thoughtfully
throughout this process,” said Jane Kupersmith, Director of the City of Bloomington’s
Department of Economic and Sustainable Development. “We are already working
collaboratively with stakeholders to identify opportunities that demonstrate readiness for
investment and align with Bloomington’s long-term vision for growth, redevelopment,
housing, innovation, and quality of place.”
City officials plan to continue engaging with city and county officials, regional partners,
developers, investors, and other stakeholders as the state’s process moves forward.
“Bloomington has long served as a center for education, tourism, innovation,
entertainment, and economic activity within Indiana,” said Mayor Kerry Thomson. “We
look forward to working alongside our state, local, and regional partners to ensure this
process positions Bloomington, and the broader region, for meaningful, long-term
investment and opportunity.”
The state’s Opportunity Zone 2.0 nomination portal opened June 3 and will remain open
through July 17 to collect recommendations and input from stakeholders. Following the
nomination period, state officials will conduct reviews and cross-agency evaluations
throughout July and August before submitting Indiana’s final census tract nominations
for federal certification on September 25.