BLOOMINGTON – The Indiana Economic Development Corporation (IEDC) recently released guidance for Indiana communities regarding the state’s process for recommending census tracts for designation under the new federal Opportunity Zone 2.0 program.
First created through federal legislation in 2017, Opportunity Zones are a federal economic development tool designed to encourage long-term private investment in eligible low-income communities through a series of tax incentives tied to qualified investment funds. The program is intended to help attract capital to areas with redevelopment potential by supporting projects such as housing, commercial development, business growth, and other community investments.
The City of Bloomington has been following the updated federal program closely and preparing for Indiana’s upcoming recommendation process.
Under the updated federal rules, states will begin nominating eligible census tracts this year for Qualified Opportunity Zone designation. Newly designated zones are expected to take effect on January 1, 2027. The updated program includes new eligibility requirements and no longer allows nearby census tracts to qualify simply because they are next to an eligible area.
IEDC has announced that a public portal will open in the coming weeks so communities, stakeholders, and members of the public can share input and recommendations as part of Indiana’s process.
The City of Bloomington currently has nine census tracts that may be eligible for consideration.
In preparation, the City has begun coordinating local planning efforts to identify redevelopment opportunities, potential investment-ready projects, and long-term economic development priorities. This work is being led by Jane Kupersmith and the City’s Department of Economic and Sustainable Development in partnership with local and regional partners.
“Our goal is to ensure Bloomington is positioned strategically and thoughtfully throughout this process,” said Jane Kupersmith, Director of the City of Bloomington’s Department of Economic and Sustainable Development. “We are already working collaboratively with stakeholders to identify opportunities that demonstrate readiness for investment and align with Bloomington’s long-term vision for redevelopment, housing, innovation, and quality of place.”
City officials plan to continue engaging with Monroe County officials, regional partners, developers, investors, and other stakeholders as the state’s process moves forward.
“Bloomington has long served as a center for education, tourism, innovation, entertainment, and economic activity within Indiana,” said Mayor Kerry Thomson. “We look forward to working alongside the IEDC and our local and regional partners to ensure this process positions Bloomington—and the broader region—for meaningful, long-term opportunity.”
Under the federal timeline, Indiana’s nomination process will begin July 1, 2026, with a 90-day submission period for states to recommend eligible census tracts for designation.
