Three Bloomington-Normal areas — Downtown Bloomington, Uptown Normal, and Northwest Normal — have been approved for federal Opportunity Zone designations beginning in January 2027.
The U.S. Department of the Treasury approved the three census tracts as part of 240 Illinois locations announced November 5 by Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity.
The designations provide federal tax incentives for investors who reinvest capital gains into qualifying development projects through Qualified Opportunity Funds.
The Bloomington-Normal Economic Development Council partnered with the City of Bloomington and Town of Normal to nominate the three areas in April.
The designations build on existing economic development incentives, including Tax Increment Financing districts and the Enterprise Zone. They also complement major public and private investments, including Bloomington’s Downtown for Everyone streetscape project, Normal’s Uptown Underpass, and the Trail East and Trail West developments.
BNEDC President and CEO Tyler Cravens says the additional incentives could help developers move projects from concept to construction.
Bloomington Mayor Dan Brady says the designation provides another opportunity to build on downtown’s recent investment and redevelopment. Normal Mayor Chris Koos says it also could help attract investment to Northwest Normal, a key gateway into the community.
Illinois selected the 240 tracts from more than 500 nominations statewide. The federal program offers tax benefits to investors who direct capital gains into qualifying projects in designated areas.
