Three Carbondale areas approved for federal Opportunity Zone program
FOX23 News at 9 p.m.
CARBONDALE, Ill. (KBSI) – Three areas of Carbondale have received federal approval under the updated Opportunity Zones 2.0 program, a move city officials say could attract private investment and support economic development.
The city announced Tuesday, Nov. 10, that the newly approved designations will take effect Jan. 1, 2027, and remain in place through Dec. 31, 2036.
The program provides federal tax incentives to investors who make qualifying long-term investments in designated areas. City officials say the incentives could encourage commercial redevelopment, downtown revitalization, industrial development and housing improvements.
Carbondale submitted four eligible census tracts for consideration as part of Illinois’ nomination process. Three of the city’s highest-priority areas received approval.
The approved areas include:
– University Mall and retail corridor (Census Tract 17077011200): Includes University Mall and surrounding commercial properties identified as having significant redevelopment potential.
– Industrial development and downtown (Census Tract 17077010800): Includes portions of downtown Carbondale and the site of a proposed industrial park.
– Downtown Carbondale (Census Tract 17077011100): Includes areas where ongoing investments are focused on building rehabilitation, business development and neighborhood revitalization.
According to the city, all three approved census tracts also qualify for enhanced federal tax incentives for rural investments.
Opportunity Zones are not new to Carbondale. The city has participated in the federal program since 2018.
Congress updated the program in 2025, making it permanent, establishing new designations every 10 years and expanding tax incentives for qualifying rural investments.
City officials say the updated program provides another tool to encourage development alongside existing economic incentives, including tax increment financing districts, Enterprise Zone incentives and other redevelopment programs.
The city’s nominations focused on areas with existing infrastructure, redevelopment opportunities and established economic development priorities.
Officials hope the designations will help attract additional private investment to support commercial projects, housing improvements, job creation and long-term economic growth.
The new Opportunity Zone designations will remain in effect for 10 years, beginning Jan. 1, 2027.
Carbondale’s original Opportunity Zone designations will remain in effect through Dec. 31, 2028, under the existing program rules.
Additional information about the federal Opportunity Zones program is available through the Illinois Department of Commerce and Economic Opportunity.
Residents and investors seeking more information about Carbondale’s approved areas can contact the city’s Economic Development Department at 618-457-3286.
