Superfund Sites and Opportunity Zones

Using Opportunity Zone tax incentives to redevelop sites

Aerial view of Denver, Colorado, on a sunny day. Image shows a partial urban skyline, a construction crane, green spaces, public transportation and a small waterway spanned by bridges.

What are Opportunity Zones?

Qualified Opportunity Zones (OZs) are census tracts of low-income and distressed communities designated by state governors and certified by the Department of Treasury. OZs were created by the 2017 Tax Cuts and Jobs Act to attract long-term private investment and stimulate economic growth in these communities.

A group of a dozen people stand in a large, high-ceilinged central room with walls and architectural features painted blue and light blue. The building is in disuse. The image is part of an event marking a Birmingham Opportunity Zone groundbreaking.

About 8,756 Opportunity Zones were established in all 50 states, the District of Columbia and the five U.S. territories.  

A freestanding map of the United States and five U.S. territories with Opportunity Zones overlaid. The color of the land is light gray. The Opportunity Zones are solid and dark blue.

Opportunity Zones can help revitalize contaminated and formerly contaminated properties, including Superfund sites. They attract private investment and strengthen the financial viability of redevelopment projects.

One-to-four story housing and newly planted trees are in the foreground, with trees and the Minneapolis urban skyline in the distance on a sunny day dotted with white clouds.

Opportunity Zones are a powerful way to encourage revitalization. Redevelopment of current or former Superfund sites may qualify for Opportunity Zone tax benefits. 

Superfund sites in Opportunity Zones

Many Superfund sites are located in, or partially in, OZs across the nation.

The sites featured in this map include active and archived sites from the Superfund Enterprise Management System (SEMS). For more information what types of sites are included in the Active and Archived site inventories see:  Superfund Data and Reports 

Explore this interactive map to see Superfund sites and Opportunity Zones. You can search an address or click on features to learn more.

Can Superfund sites qualify for Opportunity Zone benefits?

Superfund site property in an Opportunity Zone qualifies for tax benefits when the qualifying investment starts an “original use” on or “substantially improves” the property (doubles the basis in the property) in a specified timeframe. 

An “original use” on a Superfund site property means the site was significantly unused (defined as 80% of usable square feet of land or buildings are unused) for the past three years or significantly unused one year prior to the OZ being designated and through the date of acquisition.

A qualified entity that purchases real property located in an OZ from a local government that acquired the property through an involuntary transfer, such as a tax foreclosure, can treat the land and structures as meeting the eligibility criteria for the OZ tax benefits. 

What are Opportunity Zone tax benefits?

U.S. taxpayers are eligible to receive tax benefits on realized capital gains reinvested in OZs through Qualified Opportunity Funds (QOF)

1. Temporary deferral of capital gains taxes: Investors are not taxed on the capital gains invested in a QOF until they exit the fund or Dec. 31, 2026, whichever comes first.  

2. Step up in basis: Investments held for a minimum of five years will be taxed at the reduced rates of 90% for investments held for at least five years (10% basis increase) and 85% for investments held for at least seven years (15% basis increase).  

3. Tax-free gains after year 10: If an investor holds a reinvestment for 10 years, capital gains achieved by the QOF investment during that period will not be taxed. This is a permanent exclusion from taxable income. 

Can communities promote Opportunity Zones and the reuse of Superfund sites? 

Yes! Many communities are using OZs to attract investors and developers. The U.S. Department of Housing and Urban Development (HUD) and the U.S. Environmental Protection Agency (EPA) have tools and resources to help local leaders achieve equitable outcomes in OZ development projects.

The sites featured in this map include active and archived sites from the Superfund Enterprise Management System (SEMS). For more information what types of sites are included in the Active and Archived site inventories see:  Superfund Data and Reports