San Diego Opportunity Zones

San Diego sits within California, which is running its own OZ 2.0 selection process under the federal framework. The state's lead agency is GO-Biz (Governor's Office of Business and Economic Development). California has 2,469 census tracts eligible under OZ 2.0 — it can nominate up to 618 to Treasury.

156 of those tracts are inside San Diego. OZ 2.0's tightened eligibility criteria — median family income at or below 70% of the state/metro reference (down from 80% under OZ 1.0), with the contiguous-tract option eliminated — means fewer San Diego neighborhoods qualify than under the 2018 OZ 1.0 map. How states choose OZ 2.0 tracts →

For investors targeting San Diego, the OZ 2.0 tax benefits — rolling 5-year deferral, 10% basis step-up (or 30% for Rural QROFs in qualifying rural tracts), and 100% federal-tax-free exclusion of QOF appreciation after a 10-year hold — apply to investments made on or after January 1, 2027. See the full OZ 1.0 vs 2.0 comparison →

What San Diego's demographics imply: with a median household income of $89,457 and a 11.4% poverty rate, San Diego is likely to retain a meaningful share of designated tracts in higher-poverty census areas, while higher-income neighborhoods that qualified through the contiguous-tract pathway under OZ 1.0 will lose designation under OZ 2.0.