All Five Emerald Coast Opportunity Zone 2.0 Applications Selected by Washington State

Clallam EDC and EDC Team Jefferson’s Emerald Coast Opportunity Zone partnership secured every tract it nominated, including three in Clallam County

Governor Ferguson has selected all five census tracts proposed through the Emerald Coast Opportunity Zone partnership for Opportunity Zone 2.0 nomination, a result that could open the door to new private investment across Clallam and Jefferson counties. The partnership between Clallam EDC and EDC Team Jefferson submitted applications for three tracts in Clallam County and two in Jefferson County. Statewide, Washington received 152 applications and nominated 99 tracts. Of those, 36 represent opportunities in rural communities, including the tracts selected in the Emerald Coast Opportunity Zone.

The selected Clallam County tracts are 53009002400, 53009000700, and 53009000900 covering parts of the West End and two areas within the City of Port Angeles.

View the 5 Emerald Coast OZ tracts: https://commercehub.maps.arcgis.com/apps/dashboards/8646d648e13347d48bd0792026cb9582#

Built on Local Investor Interest

Clallam EDC worked diligently to develop applications that demonstrated both the economic need of the proposed zones and their potential to attract meaningful private investment. A key part of that effort was documenting interest from local investors and business owners who identified projects, business expansions, and development opportunities that could move forward with an Opportunity Zone designation.

The applications were strengthened by letters of support from these investors and business owners, who described the investments they would pursue if the proposed areas received the designation. The applications also drew backing from local governments and community partners. Together, 19 letters of support helped show that Clallam County’s communities offer real opportunities for future growth. Clallam EDC extends its sincere thanks to everyone who contributed. These designations represent a collective effort to position the North Olympic Peninsula for new investment and economic opportunity.

Opportunity Zone Tax Advantages & What’s New in Opportunity Zones 2.0

The updated Opportunity Zone program offers capital gains tax incentives to encourage long-term investment in designated communities, with enhanced benefits for rural areas.

• Capital Gains Deferral: Investors can defer taxes on eligible capital gains reinvested in a Qualified Opportunity Fund (QOF) for up to five years.
• Reduced Taxable Gains: After five years, investors receive a 10% reduction in deferred taxable gains, increasing to 30% for investments in Qualified Rural Opportunity Funds (QROFs).
• Tax-Free Investment Growth: Gains on qualifying QOF investments held for at least 10 years can be permanently exempt from federal capital gains tax.
• Lower Rural Investment Requirements: Rural properties must make capital improvements equal to 50% of their adjusted basis, compared to 100% under the standard requirement.
• Extended Designations: Certified Opportunity Zones will retain their status through December 31, 2036, with new designations taking effect January 1, 2037, as part of a recurring 10-year cycle.
• Increased Transparency: New IRS reporting requirements will help track investment, job creation, and other economic impacts of the program.

What Happens Next

The U.S. Department of the Treasury will review and certify state-submitted nominations, with new designations scheduled to take effect Jan. 1, 2027.

Investors can begin preparing by registering their Qualified Opportunity Funds (QOFs) with the IRS and reviewing realized 2026 capital gains. Visit the IRS webpage on investing in a Qualified Opportunity Fund for more information.

Interested investors, developers and business owners can contact the Clallam EDC at info@clallam.org and stay updated on the Emerald Coast Opportunity Zone at: https://www.emeraldfunds.org/