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Home | Finance & Incentives | Tax Incentives | Opportunity Zones Incentive | Background
Background

Each Governor is authorized to designate 25% of the eligible census tracts as Opportunity Zones in their State if the State contains fewer than 100 low income communities. In North Dakota, this means the Governor can designate 25 census tracts as Opportunity Zones out of an eligible 45 low-income census tracts. The Governor also has the option of including up to 5% of census tracts that are contiguous with an eligible census tract but are not themselves low-income tracts. In North Dakota, the Governor could designate up to 2 tracts as contiguous out of the state's 25 designated Opportunity Zones.

This designation by the Governor is due April 20, 2018.

Local Input

Governor Burgum is charged with designating Opportunity Zones from among North Dakota’s 45 qualifying census tracts. In North Dakota, we feel strongly that local communities have the on-the-ground expertise to recommend which eligible census tracts in their county, city, tribal land or region should be designated Opportunity Zones. That’s why we are asking you to prioritize and rank census tracts in your city/county or tribal area that are eligible to be Opportunity Zones.
  1. According to 26 U.C. Code § 1400Z–1, a population census tract is eligible for designation as an Opportunity Zone if it satisfies the definition of "low-income community" (LIC) in § 45D(e) of the Code.
  2. According to 26 CFR 601.601, Rev. Proc 2018-16.09: If the number of LICs in a State is not evenly divisible by 4, the 25 percent limitation is determined by rounding the fractional quotient up to the next whole number.
  3. Under 26 U.C. Code § 1400Z–1(e) of the Code, a tract that is not an LIC is eligible for designation if both of the following conditions are met: (1) The non-LIC tract is contiguous with an LIC that is designated as a QOZ (the contiguous LIC QOZ need not be in the same State.); and (2) The median family income of the non-LIC tract does not exceed 125 percent of the median family income of that contiguous LIC QOZ.
  4. According 26 CFR 601.601, Rev. Proc 2018-16.09(3): If the number of designated QOZs in a State is not evenly divisible by 20, the 5 percent limitation is determined by rounding the fractional quotient up to the next whole number.
  5. IRS Revenue Procedures
Development Fund Newsletter Opportunity Zones