Denver, CO – On Monday, Colorado officials submitted 91 geographic areas to the federal government for designation as new Opportunity Zones, marking the maximum number allowed under the program. This move is part of a federal initiative designed to incentivize long-term private investments in designated low-income communities across the state.
State leaders estimate these 91 proposed Opportunity Zones could draw more than $4 billion in total investments throughout Colorado. The program allows investors to receive tax benefits when they commit capital to real estate, infrastructure projects, and operating businesses within these designated zones. The goal is to stimulate the economy, create jobs, improve infrastructure, construct new housing and manufacturing facilities, and foster business growth.
Governor Jared Polis, in a joint news release with the Colorado Office of Economic Development and International Trade (OEDIT), stated that designating new Opportunity Zones provides "big opportunities for our economy and our communities." He added that these zones would help bring needed investment to various parts of Colorado.
The U.S. Department of the Treasury had identified 362 census tracts in Colorado that met the updated program's eligibility requirements. From these, state officials were invited to submit up to 91 tracts for official designation.
The selection process was extensive, with OEDIT’s Business Funding and Incentives Division conducting a month-long review. This process involved over 100 stakeholder engagement meetings, six statewide webinars, four regional in-person meetings, and a statewide survey to gather input from communities on nominating suitable low-income census tracts. The review prioritized selecting tracts across Colorado that included rural areas and regions beyond the Front Range, specifically supporting existing efforts to diversify and grow local economies.
While the original Opportunity Zone initiative, launched in 2018, is set to sunset in December 2028, a federal bill signed into law in July 2025 continued the program, making it permanent and updating its eligibility requirements and benefits. Colorado had previously led the nation in leveraging the program's first iteration, ranking second for the number of zones that received investment and eighth for total capital raised, according to the state’s release. During that initial phase, Colorado achieved more than $3.2 billion in investments across the state by the end of 2024, representing $534 per person, with 94% of Opportunity Zones receiving investment, including 95% of rural-designated zones.
Jeff Kraft, deputy director of OEDIT’s Business Funding and Incentives division, expects confirmation of Colorado's proposed zones in November, with the second iteration of Opportunity Zones set to go live on January 1. Governor Polis expressed enthusiasm, stating, "We’re ready to go, and we’re very excited about what this means for some lower-income areas."
Of the 91 census tracts submitted, eight are located in El Paso County, including areas like the North Nevada Corridor, Printers Hill, the South Nevada Corridor, and the Stratton Meadows and East Lake neighborhoods. Colorado Springs Mayor Yemi Mobolade thanked Polis and state economic development leaders for advancing these designations, noting the partnership helps attract "thoughtful investment that strengthens our economy." Projects in these areas are planned to improve infrastructure and redevelop communities.
Additionally, 39 Opportunity Zones are proposed across Denver, Adams, Arapahoe, and Jefferson counties. Denver Mayor Mike Johnston highlighted that every eligible neighborhood on the Mile High Line was selected, aiming to build momentum and create new opportunities for investment, jobs, housing, and economic vitality. Past successes include the redevelopment of Denver's Sun Valley neighborhood, which leveraged Opportunity Zone designation to replace 333 public housing units with 965 modern, mixed-income homes. Ongoing projects in proposed Denver zones include the rebuilding of the Sam Sandos Westside Family Health Center in Sun Valley and infrastructure improvements along Washington Street and 51st Avenue in Globeville, a historically low-income area, alongside the construction of over 3,400 new mixed-use commercial and residential units.