The U.S. Department of the Treasury has approved 25 New Hampshire census tracts for the latest federal Opportunity Zone program, including two areas in Keene. The designations are intended to encourage investment by offering tax benefits to eligible investors who put capital gains into approved projects.
Treasury cleared the New Hampshire selections Tuesday, Oct. 27, after state officials submitted 53 eligible locations for consideration. The approved tracts cover all 10 New Hampshire counties, including 17 rural communities, according to information provided by state officials.
Keene areas included
The two Keene tracts cover portions of the city's south and southwest sides. The designated area extends from the western edge of Keene toward downtown and the Route 101 corridor. It includes sections south of West Street, areas below the Route 9 and Route 101 corridors, parts of the Winchester Street and Island Street neighborhoods and locations near Main Street and Marlboro Street.
The boundaries also extend toward eastern Keene. The designation applies to the census tracts identified on the federal map, rather than automatically covering every property within or next to those areas.
Gov. Kelly Ayotte said the approvals are intended to direct private capital toward housing, job creation and infrastructure in communities across New Hampshire, including rural areas. New Hampshire Department of Business and Economic Affairs Commissioner Lucy Lange said municipalities and regional partners identified potential development sites in their submissions, including locations for housing and business activity.
How the tax incentive works
Opportunity Zones were created under the federal Tax Cuts and Jobs Act of 2017. The program allows eligible investors to place capital gains into qualified investment vehicles connected to designated zones. Congress revised the program in July 2025 through Opportunity Zone 2.0, adding incentives for certain investments and creating new rules for rural zones.
For qualifying rural Opportunity Zone funds, the revised rules permit a 30% increase in the investment basis after five years. The basis adjustment is one of the tax benefits available under the updated structure. State officials said the changes are designed to make projects such as workforce housing, industrial and commercial development and public-facing infrastructure more attractive to investors.
- 25 New Hampshire census tracts received federal approval.
- 2 of the approved tracts are in Keene.
- 17 approved tracts are in rural communities.
- 53 eligible locations were submitted for consideration.
The approved locations represent the state's latest participation in a federal tax-incentive program. The designations do not themselves authorize a particular construction project or guarantee that investment will occur. They establish the geographic areas in which qualifying investments may receive the benefits available under Opportunity Zone 2.0.
