Opportunity Zones 1.0

Under the original Opportunity Zones (OZ 1.0) program, New Hampshire received designations for 27 specific low-income census tracts. The OZ 1.0 program allowed investors to defer prior capital gains, with those deferrals expiring at the end of 2026. These legacy zones remain active until December 31, 2028. 

Investments placed into Qualified Opportunity Funds (QOF) that operate within designated Opportunity Zones could defer capital gains taxes on the original investment and, for investors who held their QOF interest for at least 10 years, exclude any new appreciation from taxation entirely. QOFs were required to hold at least 90 percent of their capital in Opportunity Zones. 

A QOF is an investment vehicle organized as a corporation or partnership that deploys capital into designated zones and must hold at least 90 percent of its assets in qualified opportunity zone property.

New Opportunity Zones

Opportunity Zones (OZ) investments receive a 10% basis step-up after a 5-year holding period, while the new rural designations provide a 30% basis step-up for QROF investments in rural areas after 5 years. This is a significant benefit for New Hampshire, as the majority of our eligible tracts are expected to qualify as rural.

Reduced substantial improvement requirement (for rural tracks there is a 50% improvement requirement), meaning projects no longer need to invest at least double the property’s basis to qualify.

Designed to improve project feasibility in rural markets, like much of New Hampshire.

Duration: The program is now permanent, with zones redesignated on a decennial basis. OZ 2.0 designations take effect January 1, 2027.

Deferral of Capital Gains: Investors now receive a rolling five-year deferral from the date of investment, replacing the fixed December 31, 2026, deadline under OZ 1.0.

Qualified Rural Opportunity Fund (QROF) - a QOF that holds at least 90 percent of its assets in rural area QOZs. QROFs benefit from a lowered substantial improvement threshold of 50 percent (versus 100 percent for standard QOFs) and a 30 percent basis step-up at five years (versus 10 percent for standard QOFs).

IRS Rev. Proc. 2026-14 Guidance

Eligible Tracts

New Hampshire has 53 tracts eligible for OZ 2.0. Because that number is fewer than 100, federal law allows the state to nominate up to 25 tracts. The list of tracts is available here. Eligible Opportunity Zones 2.0 tracts

To qualify, a tract must satisfy at least one of the following criteria, based on U.S. Census Bureau 2020-2024 American Community Survey (ACS) data:   The tract does not have a median family income (MFI) that exceeds 70 percent of the statewide (rural tract) or metropolitan (non-rural tract) average. The tract has a poverty rate of 20 percent or higher and has an MFI no higher than 125 percent of the statewide or metropolitan average. Unlike OZ 1.0, there is no “contiguous tract” exception in OZ 2.0. A tract adjacent to a designated zone does not qualify on that basis alone.  Eligible Opportunity Zones 2.0 tracts Nomination Form

The map above shows existing OZ 1.0 census tracts alongside tracts eligible for OZ 2.0. Please note that tracts in yellow are OZ 1.0 tracts eligible for OZ 2.0. Dark blue tracts were designated under OZ 1.0 and remain eligible. Light blue tracts are newly eligible in 2026.

OZ Submission and Scoring Criteria

The State of New Hampshire will use Community Nomination Form submissions, federal data, and direct outreach to submit 25 tracts for designation to U.S. Treasury by September 28, 2026. Designations take effect January 1, 2027, and run through December 31, 2036. Please note that submitting this form is required for an eligible tract to be considered but does not guarantee nomination.

Anyone with knowledge of the tract may submit, including municipal officials, economic development organizations, landowners, or prospective developers. Municipalities with multiple tracts may be submitted separately or as a packet. All information is to be sent to oz2@livefree.nh.gov.

Supporting materials strengthen a nomination. Useful attachments include project summaries, maps, letters of support, planning documents, endorsements, and investor materials. Submissions should also describe specific projects planned or underway within the tract. Please note that all information submitted is subject to NH Right-to-Know laws (RSA 91-A) and may also be subject to public review.

Applications may be supplemented or updated through the deadline. All materials must be received by BEA no later than 4:00 EDT on August 28, 2026.