El Paso County backs Opportunity Zones 2.0 nominations, adds three tracks

El Paso County commissioners voted May 11 to send a letter of support to the Texas Governor’s Office nominating eligible census tracts for the Opportunity Zones 2.0 program and to add three precinct-2 tracts at the request of Commissioner Sam Stout.

Economic development staff described how Opportunity Zones 2.0 (a federal tax-incentive model administered through a state nomination process) allows investors to defer and potentially reduce capital-gains tax if they reinvest gains into qualified opportunity funds that deploy projects in designated low-income census tracts. Staff walked the court through eligibility thresholds, evaluation criteria (geographic balance, project viability, local support) and the timeline: local nominations by June 2026; state submission in early June 2026; U.S. Treasury certification by late 2026; federal designations effective Jan. 1, 2027.

Commissioner Stout proposed adding three census tracts in precinct 2 (tracks 28, 29 and 30) — locations that include the County Coliseum, parts of the MCA campus and Bridge of the Americas approaches — arguing nominations would help align private capital with county strategic priorities. The court approved the amended request.

Economic development staff emphasized that the program is designed to attract private capital, not to provide county grant dollars; projects still must be financed by private funds and structured through opportunity funds. Local governments strengthen applications by providing an economic rationale and evidence of local alignment; staff said they had consulted mayors and municipal leaders during packet preparation.

Next steps: county administration will prepare the letter of support and submit the nomination packet to the Governor’s Office in advance of the state’s submission to the U.S. Treasury.