Gov. Jim Pillen has nominated 28 Nebraska census tracts for designation under the new federal Opportunity Zones 2.0 program, including five in Lincoln. State leaders hope the incentives will attract private investment and accelerate workforce housing development across Nebraska.
The nominations include five zones in Lincoln, one each in Bellevue, Columbus, Fremont and Norfolk, 10 in Omaha, and one each in Alliance, Beatrice, Crete, Hastings, Lexington, McCook, North Platte, Ogallala and Scottsbluff. The nominations have been submitted to the U.S. Treasury, with the designations expected to take effect Jan. 1, 2027.
Pillen said the redesigned program is a significant improvement over the original Opportunity Zones initiative because it places a stronger emphasis on creating affordable workforce housing while encouraging long-term private investment.
“The nominated Opportunity Zones are going to be an incredible tool for all communities to help with investment and especially to develop more workforce housing,” Pillen said. He added that helping more Nebraskans become homeowners at a younger age is central to the program’s goals.
Nebraska Department of Economic Development Director Maureen Larson said the Opportunity Zones program, first created by Congress in 2017, was made permanent through legislation approved last year. She said the updated version includes expanded benefits for rural communities and requires governors to re-designate eligible zones every 10 years.
Of the 112 eligible census tracts in Nebraska, communities submitted applications for 107. State officials evaluated each proposal based on investment readiness, economic need and potential community benefit before recommending 28 tracts to the governor.
State leaders say getting the designations approved early gives communities and developers additional time to line up investment projects before the program officially begins next year. They also expect the new reporting requirements included in Opportunity Zones 2.0 to provide greater accountability by tracking where investment dollars are spent and the economic impact they generate.
Pillen said he expects the new designations to quickly spur development throughout the state. “I think there’s going to be a lot of wood being thrown in the air quickly, a lot of concrete going down, because there are a lot of people really excited.”