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SCAM ALERT: DCEO has been made aware of organizations receiving fraudulent “notice of award” letters claiming to be from the Illinois Department of Commerce and Economic Opportunity. These are not legitimate notices from DCEO. If your organization receives a notice, please report it to the Federal Trade Commission and/or the FBI’s Internet Crime Complaint Center.

Illinois Opportunity Zones

Background

The federal Qualified Opportunity Zone program provides an incentive for investors to invest in designated lower-income communities to help create jobs and spur economic development in areas that need it the most. The program does this by providing significant tax benefits over time to investors that utilize a Qualified Opportunity Fund to reinvest their capital gains into projects within Opportunity Zones.

In July 2025, the federal government adjusted and made permanent the Opportunity Zone program. More information on the changes can be found on the IRS website. Please note that these changes will require the State of Illinois to nominate new Opportunity Zones for designation, which will take effect starting in January 2027. As the State of Illinois has updates and additional federal guidance is made available, we will share those here.

Illinois' designated Opportunity Zones remain active and are available for investment. Investors and developers may continue to identify projects within these established zones and take advantage of the tax benefits provided through the federal program. A detailed map that contains current Opportunity Zones in the State of Illinois can be found below.

How to Benefit by Investing in an Opportunity Zone

  1. Identify an Opportunity Zone: Visit the U.S. Census Bureau's Geocoder, which will identify census tracts. Cross reference the census tracts with Opportunity Zone designated tracts in Illinois (outside of Chicago) and Chicago.

  2. Invest in a Qualified Opportunity Fund: To take advantage of tax benefits, you must invest through a Qualified Opportunity Fund that holds at least 90% of its assets in Opportunity Zones. More information on Qualified Opportunity Funds and associated benefits can be found on the IRS website.

  3. Take Advantage of Tax Benefits: Investors can receive significant tax reductions based on the holding period. Detailed information on how to structure investments and obtain these benefits can also be found on the IRS website.

For any questions about Opportunity Zones in Illinois or to further discuss investments in an Opportunity Zone, please contact DCEO at opportunityzones@illinois.gov.