Opportunity Zones 2.0: Positioning McMinnville for the Next Wave of Rural Investment

Apr 24, 2026

As communities across the country prepare for the next evolution of Opportunity Zones, McMinnville is actively organizing, aligning, and positioning itself to compete for designation under Opportunity Zones 2.0. Building on lessons from the original program, local and regional partners are taking strategic steps to ensure the community is ready to attract private investment.

A Quick Look Back: Opportunity Zones 1.0

Established under the 2017 Tax Cuts and Jobs Act, Opportunity Zones 1.0 were designed as a federal economic development tool to encourage long-term private investment in low-income communities. Investors could defer and reduce capital gains taxes by reinvesting in designated areas, with the greatest benefit awarded to investments held for 10 years or more.

In Oregon, nearly 300 census tracts were eligible under OZ 1.0, with 86 ultimately nominated by the state. While the program successfully unlocked capital in some markets, outcomes varied widely and are hard to track due to a lack of reporting requirements. The most successful communities shared several characteristics:

Clearly defined investment priorities

Strong local partnerships

“Shovel-ready” or investment-ready sites

Coordinated economic development strategies

These lessons are directly informing how Oregon—and McMinnville—are approaching Opportunity Zones 2.0.

What’s New in Opportunity Zones 2.0

Opportunity Zones 2.0 represents a significant evolution of the program. Key updates include:

A permanent program structure with new designations every 10 years

Updated tax incentives, including 5-year deferral and basis step-ups

Continued elimination of capital gains taxes on investments held for 10+ years

Stricter eligibility thresholds, narrowing the number of qualifying tracts

Increased emphasis on investments in rural communities

Greater accountability and reporting requirements

In Oregon, the number of eligible tracts is expected to shrink to approximately 229 statewide, with the state able to nominate up to 58. This makes the process more competitive—and more strategic—than ever.

The Role of Business Oregon

Business Oregon is leading the statewide nomination process. The timeline is already underway:

Early 2026: Release of eligible tracts and stakeholder engagement

The following Opportunity Zone interactive map reflects the final list of eligible tracts issued by Treasury on April 6th, 2026.

Spring 2026: Public input and regional coordination

Accepting Regional Collaboration Applications: April 13, 2026 – May 22, 2026

Business Oregon will host it’s 3rd Webinar on April 21, 2026

July 1, 2026: Opening of the 90-day nomination window

The Governor will evaluate and submitt final nominations to the US Treasury.

January 1, 2027: New Opportunity Zones take effect

Importantly, local input will heavily influence which areas are ultimately nominated.

Regional Collaboration: A Unified Approach

In Yamhill County, economic development leaders are taking a coordinated approach through the Yamhill County Economic Development Alliance initiative. There are five eligible census tracts in Yamhill County in Newberg (1), Sheridan and Willamina (1), and McMinnville (3). This collaboration is helping ensure that:

Priority sites are clearly identified

Messaging is aligned across jurisdictions

Letters of support and applications are cohesive and compelling

Investment opportunities are framed within a broader regional strategy

This kind of alignment is exactly what Opportunity Zones 2.0 is designed to reward.

McMinnville’s Strategy: Investment-Ready Sites

The City of McMinnville is proactively identifying and preparing key sites that could benefit from Opportunity Zone designation. Two standout opportunities include:

The McMinnville Landing

The McMinnville Landing represents a major industrial and employment opportunity for the region. With its scale (190 acres), location, and long-term development potential, it is well-positioned to attract advanced manufacturing, logistics, and innovation-driven industries.

Local efforts are focused on:

Infrastructure readiness

Site planning and positioning

Aligning with regional industry targets

Ensuring the site is competitive for private capital investment

Linfield University – Booth Bend Expansion

In addition, Linfield University’s approximately 40-acre property near Booth Bend presents a unique opportunity to integrate education, workforce development, and innovation space. This site could support:

Research and development

Entrepreneurial ecosystems

Workforce training aligned with industry needs

Together, these sites demonstrate the kind of intentional, investment-ready planning that Opportunity Zones 2.0 prioritizes.

Why This Matters for McMinnville

Opportunity Zone designation is not a guarantee of investment—but it is a powerful signal to the market. When paired with strong local leadership and clear priorities, it can:

Attract long-term private capital

Support job creation and business growth

Accelerate industrial and entrepreneurial development

Strengthen the community’s economic resilience

As emphasized in regional discussions, Opportunity Zones work best when communities are prepared, aligned, and proactive.

What Comes Next

Over the coming months, McMinnville and its regional partners will:

Review eligible census tracts

Identify top-priority nomination areas

Develop strong, coordinated applications

Engage stakeholders to demonstrate broad support

The window for nomination will be short—likely 4 to 6 weeks—making current preparation efforts critical. Business Oregon will be reviewing and scoring applications to prepare for the Governor’s review between July 1 and September 29, 2026.

A Defining Moment

Opportunity Zones 2.0 represents a rare opportunity to shape the next decade of investment in McMinnville. Through collaboration between the City, the Yamhill County Economic Development Alliance, Business Oregon, and key institutional partners like Linfield University, the region is positioning itself to compete for investment..

With the right alignment and preparation, McMinnville can turn designation into meaningful, long-term economic impact.

To learn more about:

Business Oregon Opportunity Zones:
https://www.oregon.gov/biz/programs/opportunity_zones/pages/default.aspx

US Treasury Qualified Opportunity Zones:
https://home.treasury.gov/policy-issues/tax-policy/data-transparency/qualified-opportunity-zones

Novogradac Opportunity Zone Interactive Mapping Tool:
https://www.novoco.com/resource-centers/opportunity-zones-resource-center/novogradac-opportunity-zones-20-mapping-tool