Following a statewide selection process, Governor Bob Ferguson has nominated six Tacoma census tracts as federal Opportunity Zones. This includes five tracts seeking to retain their existing designation – 61602, 62600, 61601, 61400, and 63401 – and one new tract, 94007.
“These six Opportunity Zones will help unlock more housing around transit, more jobs near businesses, and more corridor investment, all of which are core to Tacoma’s long-term vision for itself,” said Mayor Anders Ibsen. “I look forward to helping grow local Tacoma businesses in the city they love, and welcoming new businesses that realize how great of a city we truly are.”
Focus corridors include Downtown Tacoma, Hilltop, the Brewery District, Portland Avenue, South Tacoma along Pacific Avenue, the South Tacoma Manufacturing Industrial Center, and the Puyallup Tribal Headquarters vicinity. These designations support job-creating industrial activity, a decrease in the number of vacant properties downtown and in the neighborhood business districts, and overall economic resilience for the community.
“This expansion of federal Opportunity Zones in Tacoma will help drive vital economic development across some of our lowest opportunity areas,” said Deputy Mayor Joe Bushnell. “The City of Tacoma will continue working hard to help businesses tap into the technical support and resources they need to thrive here.”
Tacoma’s existing Opportunity Zones have attracted over $250 million of private investment since 2018. Previously invested capital has been used to support housing production, mixed-use development, and transit-oriented growth that serves diverse income levels. With an ongoing focus on “low opportunity” areas as defined in its Equity Index, the City of Tacoma’s efforts to attract private capital to historically underinvested parts of the city – and improve residents’ access to community facilities, services, infrastructure, and employment – are ongoing.
“Opportunity Zones give Tacoma another tool to attract investment to neighborhoods where it can make a difference,” said Economic Development Committee Chair and At-Large Council Member Olgy Diaz. “I’m looking forward to seeing how local businesses can use this incentive to grow and how it can encourage new businesses to put down roots in these areas. When we can bring more small businesses into our communities, we create more opportunities for people to find jobs, support local entrepreneurs, and build a stronger local economy. That’s how investment can translate into real benefits for Tacoma residents and help our communities thrive.”
“Through my work on Tacoma’s Housing Accelerator Program, I’ve seen firsthand how important access to financing is to getting housing projects built,” said District 1 Council Member John Hines. “Opportunity Zones have been a valuable tool for attracting private investment to Tacoma, helping turn development opportunities into real housing, jobs, and economic growth. We’ve already seen the impact of these investments across our city, and I’m excited that we have the opportunity to continue building on that success. These investments help us create a stronger, more vibrant, and more resilient Tacoma.”
According to federal rules, governors can nominate up to 25 percent of eligible census tracts with median incomes below 70 percent of County Area Median Income. The number of nominations statewide dropped from 139 zones in 36 counties down to 99 zones prioritizing rural tracts.
The Tacoma-specific nominations received the support of Representative Emily Randall, the Puyallup Tribe of Indians, the Puget Sound Regional Council, Pierce County, the Tacoma-Pierce County Chamber of Commerce, the Economic Development Board of Tacoma-Pierce County, the Manufacturing Industrial Council, the Downtown Tacoma Partnership, the University of Washington Tacoma, Sound Transit, and housing developers.
The revamped federal Opportunity Zones program now includes detailed federal reporting requirements making it easier to track the amount of investment created through the program.
The federal Opportunity Zones program is a tax incentive program designed to spur investment in low-income communities. It operates without municipal fiscal impact to the City of Tacoma.
More information about nominated tracts, state investment maps, and federal implementation guidelines is available at commerce.wa.gov/opportunity-zones.