Pima County Submits Three Tracts for Second-Generation Opportunity Zone Designation

BizTUCSONJune 30, 2026

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Pima County Economic Development has completed its submission to the Arizona Commerce Authority, nominating three census tracts for the Second-Generation Opportunity Zone (OZ 2.0) program ahead of the June 19 deadline.

The three tracts submitted are tract 004115 (Los Ranchitos/Palo Verde), tract 004512 (Wetmore/La Cholla), and tract 002300 (City of South Tucson).

Opportunity Zones are federally designated lower-income census tracts where private investors receive tax incentives for long-term capital investment. Made permanent by the One Big Beautiful Bill Act in July 2025, the program now operates on a ten-year designation cycle, with second-generation zones taking effect January 1, 2027. Arizona attracted approximately $2.65 billion in OZ 1.0 investment, the second most of any state.

Pima County’s selections followed a structured evaluation of all 12 ACA-eligible tracts, incorporating a public stakeholder survey, a Development Services Department zoning analysis, and alignment with existing Community Revitalization Area designations. The preliminary recommendations were presented to the Board of Supervisors at a June 9 Study Session, where Board feedback informed the final tract selections approved by the County Administrator.

Following submittal, the Arizona Governor will nominate the tracts to the U.S. Treasury for formal acceptance, with program benefits anticipated to take effect in January 2027.