BOISE, Idaho — Five areas of Boise could receive a new federal designation intended to encourage private investment in housing, businesses and redevelopment.
The city nominated Downtown, Shoreline, the University District, South Boise Village and West Boise for designation as Opportunity Zones. The areas represent five of Boise’s 13 eligible census tracts.
WATCH | Find out how the tax incentive works and what it could mean for housing, businesses and development:
Opportunity Zones are designated areas where investors can qualify for federal tax benefits by investing private money in certain projects. The program does not use city or state tax dollars.
Kiah Jones, the Boise mayor’s housing adviser, said the program could help direct investment toward areas positioned for growth.
“It’s a really great tool for us to channel and incentivize private investment in areas of Boise that are set up for that growth, without any city tax dollars or state dollars going into that,” Jones said.
Cities and states across the country are reviewing eligible areas and submitting nominations for the federal program. Gov. Brad Little and the Idaho Department of Commerce recommended Boise’s five selections to the federal government.
The city selected the areas after considering factors including existing infrastructure, transit access, zoning, economic conditions and the amount of land available for additional development.
“Housing is one of the biggest opportunities for Opportunity Zones,” Jones said. “We were really intentional with looking at the parts of our city that can accommodate the most housing growth and prioritizing those areas for Opportunity Zone designation.”
If approved, the designation could make the five areas more attractive to investors interested in projects such as housing, small businesses, commercial development or the redevelopment of underused properties.
The designation would not require development, and the city would not choose which private projects receive investments.
Jones said the program should be viewed as a long-term development tool rather than an immediate change.
“We’re looking forward to partnering with the community and seeing over the next 10 years what can happen,” Jones said. “This is not an overnight change in these areas. This is really long-term planning and responsible growth planning for the city.”
The U.S. Department of the Treasury will make the final decision on the nominations. If approved, the new Opportunity Zones would take effect Jan. 1, 2027, and remain in place for 10 years.
