Bloomington, Indiana – Bloomington is preparing for the next chapter of a federal investment program that could shape redevelopment, housing, business growth, and long-term community planning across parts of the city.
The effort follows new guidance from the Indiana Housing and Community Development Authority, which recently outlined how Indiana communities can take part in the state’s process for recommending census tracts under the new federal Opportunity Zone 2.0 program.
The nomination portal opened June 3 and will remain available through July 17, giving local governments, economic development groups, investors, developers, and other stakeholders time to submit recommendations.
Opportunity Zones were first created through federal legislation in 2017. The program was designed to bring long-term private investment into eligible low-income communities by offering tax incentives tied to qualified investment funds. In practice, the tool can support housing, commercial projects, business expansion, redevelopment work, and other investments meant to strengthen local economies.
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Now, with updated federal legislation signed into law last year and guidance from the U.S. Treasury and Internal Revenue Service, states are preparing to recommend eligible census tracts for the next round. The new design makes Opportunity Zones a permanent federal economic development tool, with a recurring process for identifying communities that may benefit from private capital.
For Bloomington, the process carries local weight. City officials said Bloomington currently has nine eligible census tracts that could be considered for recommendation to the Governor, who will then submit final selections to the U.S. Department of the Treasury for federal certification.
The city has already begun organizing its local strategy. Planning work is focused on redevelopment possibilities, potential investment-ready projects, and long-term economic development priorities. That effort is being led by Jane Kupersmith and the City of Bloomington Department of Economic and Sustainable Development, working with local and regional partners.
“Our goal is to ensure Bloomington is positioned strategically and thoughtfully throughout this process,” said Jane Kupersmith, Director of the City of Bloomington’s Department of Economic and Sustainable Development. “We are already working collaboratively with stakeholders to identify opportunities that demonstrate readiness for investment and align with Bloomington’s long-term vision for growth, redevelopment, housing, innovation, and quality of place.”
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City officials said engagement will continue as Indiana moves through the nomination process. That includes coordination with city and county officials, regional partners, developers, investors, and other stakeholders.
“Bloomington has long served as a center for education, tourism, innovation, entertainment, and economic activity within Indiana,” said Mayor Kerry Thomson. “We look forward to working alongside our state, local, and regional partners to ensure this process positions Bloomington, and the broader region, for meaningful, long-term investment and opportunity.”
After the portal closes July 17, state officials will review recommendations and conduct cross-agency evaluations through July and August. Indiana’s final census tract nominations are scheduled to be submitted for federal certification on September 25.
