New York Opportunity Zones

New York sits within New York, which is running its own OZ 2.0 selection process under the federal framework. The state's lead agency is Empire State Development (ESD). New York has 1,702 census tracts eligible under OZ 2.0 — it can nominate up to 426 to Treasury.

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

For investors targeting New York, 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 New York's demographics imply: with a median household income of $76,607 and a 17.5% poverty rate, New York 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.