Opportunity Zones

Palestine, Texas, is home to two federally designated Opportunity Zones, offering an additional financial incentive for long-term private investment. Opportunity Zones are best viewed as a project-enhancing tool—they do not replace strong fundamentals, but they can improve project feasibility and help competitive sites stand out when compared to non-designated locations.

When paired with Palestine’s strategic East Texas location, available industrial sites, workforce access, and infrastructure, Opportunity Zones can serve as a meaningful advantage for qualified developments with a long-term hold strategy.

At a Glance

Number of Zones in Anderson County, TX: 2

Primary In-City Locations:

• Willow Creek Business Park
• Palestine Municipal Airport
• Portions of the Highway 79 corridor

Use Case: Financial “tiebreaker” for competitive or borderline projects

Best Fit: Long-term investment and redevelopment projects

Administration: Federal program created under the Tax Cuts and Jobs Act of 2017

Key Investor Benefits

• Deferral of capital gains taxes when gains are reinvested through a Qualified Opportunity Fund
• Reduction of deferred gains after a five-year hold
• Permanent exclusion of taxes on new appreciation for investments held at least ten years
• Enhanced incentives available for qualifying rural Opportunity Zones under the updated program framework

Opportunity Zone 2.0 — What Investors Should Know

• Program permanently extended in 2025
• New Opportunity Zone designations issued every 10 years beginning in 2027
• Rolling investment timelines replace prior sunset dates
• More targeted eligibility standards, with stronger incentives for rural communities