Program encourages private investment in economically distressed communities
COLUMBIA, S.C. — The South Carolina Department of Commerce (S.C. Commerce), on behalf of the state of South Carolina, is requesting input to guide the nomination of eligible census tracts for designation under the federal Opportunity Zone program, a federal initiative designed to encourage economic development and job creation through long-term private investment in designated low-income urban and rural communities.
Originally enacted as part of the Tax Cuts and Jobs Act of 2017, the program provides federal tax incentives for taxpayers who reinvest realized capital gains into Qualified Opportunity Funds (QOF), which in turn invest in designated Opportunity Zones. The program was recently made permanent and updated through the One, Big, Beautiful Bill Act, signed into law on July 4, 2025. These updates modernize the program to support sustained, targeted investment, including revised eligibility criteria and enhanced benefits tied to the length of investment. Investors may qualify for capital gains deferral and other tax advantages, further incentivizing long-term economic activity in underserved communities.
Under the revised program, Governor Henry McMaster may nominate up to 25% of South Carolina’s eligible census tracts for Opportunity Zone designation.
While some currently designated Opportunity Zones may be eligible for redesignation, others may not meet the updated criteria. To ensure a comprehensive and inclusive nomination process, S.C. Commerce invites stakeholders, community leaders and the public to submit recommendations for census tracts within their communities.
Submission Deadline:
All recommendations must be submitted no later than June 1, 2026, via email to [email protected].
For additional information or to submit a census tract for consideration, visit www.sccommerce.com/opportunity-zone. This webpage will be updated as further federal guidance becomes available.
Program Contact:
For questions or more information, email [email protected].