26 U.S.C. § 1400Z: Designation

For the purposes of this subchapter, the term “qualified opportunity zone” means a population census tract that is a low-income community that is designated as a qualified opportunity zone. nominates the tract for designation as a qualified opportunity zone, and notifies the Secretary in writing of such nomination, and the Secretary certifies such nomination and designates such tract as a qualified opportunity zone before the end of the consideration period. A chief executive officer of a State may request that the Secretary extend either the determination or consideration period, or both (determined without regard to this subparagraph), 1 for an additional 30 days. 1 So in original. Probably should be “paragraph),”. Each population census tract in Puerto Rico that is a low-income community shall be deemed to be certified and designated as a qualified opportunity zone, effective on the date of the enactment of Public Law 115–97 . in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or has a poverty rate of at least 20 percent, and in the case of a population census tract not located within a metropolitan area, does not exceed 125 percent of the statewide median family income, or in the case of a population census tract located within a metropolitan area, does not exceed 125 percent of the metropolitan area median family income. The term “consideration period” means the 30-day period beginning on the date on which the Secretary receives notice under subsection (b)(1)(A)(ii), as extended under subsection (b)(2). The term “determination period” means the 90-day period beginning on the decennial determination date, as extended under subsection (b)(2). July 1, 2026 , and each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph. For purposes of this section, the term “State” includes any possession of the United States. Except as provided by paragraph (2), the number of population census tracts in a State that may be designated as qualified opportunity zones under this section during any period may not exceed 25 percent of the number of low-income communities in the State. If the number of low-income communities in a State is less than 100, then a total of 25 of such tracts may be designated as qualified opportunity zones during any period. A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. For purposes of this section, the term “applicable start date” means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was certified and designated by the Secretary under subsection (b)(1)(B). Except as provided in subparagraph (B), the amendments made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [ July 4, 2025 ]. The amendment made by paragraph (3) [amending this section] shall take effect on December 31, 2026 .”