Phoenix Opportunity Zones

Phoenix falls under Arizona's OZ 2.0 selection process. The state's lead agency — Arizona Commerce Authority (ACA) — will recommend tracts for nomination by September 29, 2026. Residents, developers, and community organizations in Phoenix can typically submit input through the state's community-input window.

Under the One Big Beautiful Bill Act, OZ 2.0 tightens the low-income community criteria to 70 percent of area median income (down from 80 percent under OZ 1.0), eliminates the contiguous-tract option, and requires at least 33 percent of nominated tracts to be entirely rural. That changes which Phoenix neighborhoods qualify.

Final designations take effect January 1, 2027. Investments into Qualified Opportunity Funds targeting Phoenix tracts on or after that date receive OZ 2.0 benefits: rolling 5-year deferral, 15 percent basis step-up, and 100 percent exclusion of QOF appreciation after a 10-year hold.