Boston Opportunity Zones

Boston sits within Massachusetts, which is running its own OZ 2.0 selection process under the federal framework. The state's governor and economic development office will lead the selection. Massachusetts has 410 census tracts eligible under OZ 2.0 — it can nominate up to 103 to Treasury.

32 of those tracts are inside Boston. 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 Boston neighborhoods qualify than under the 2018 OZ 1.0 map. How states choose OZ 2.0 tracts →

For investors targeting Boston, 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 Boston's demographics imply: with a median household income of $89,212 and a 17.6% poverty rate, Boston 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.