Richmond gets eight new opportunity zones

Eight new census tracts in Richmond will be designated as Opportunity Zones this January, opening up the possibility of tax incentives for investors who put their money into projects in the economically distressed areas. 

The zones “are an important tool for driving investment where it can make the biggest difference,” said Virginia Secretary of Commerce and Trade Carrie Chenery in an announcement Friday. 

Richmond’s new zones are located in census tracts:

• 51760011100, surrounding Chamberlayne Avenue near Virginia Union University; 
• 51760030100, encompassing Gilpin Court;
• 51760030501, covering the Arts District between East Broad and Canal streets and Belvidere and North 5th Street;
• 51760060400, encompassing much of Swansboro, Reedy Creek and Broad Rock;
• 51760060700, covering a large swathe of the Route 1 and Interstate 95 corridors from Stockton Street in the west to the James River in the east and as far south as Bellemeade Road; 
• 51760070602, covering a shoe-shaped wedge west of the McGuire VA Hospital;
• 51760070700, including neighborhoods like Pocoshock, Warwick, Worthington Farms and Elkhardt; and
• 51760071004, stretching around Chippenham Hospital into the Hioaks neighborhood south to Midlothian Turnpike 

Opportunity Zones aim to encourage investors to put money into an area by letting them defer or reduce the tax on prior capital gains by investing the profits into the designated zone. 

The federal program was first launched in 2018 and created 11 Opportunity Zones in Richmond. They included a zone in Scott’s Addition, which subsequently saw extensive investment as a result of the program. The original designations will remain through the end of 2028, and the next batch will also last 10 years. 

Richmond Mayor Danny Avula said his administration was “thrilled” with the designations.  

“To meaningfully strengthen our communities, we need to find ways to encourage investment,” he said. “Federal tax incentives like the Opportunity Zone program, when applied to priority reinvestment areas such as Gilpin Court, Monroe Ward, Southside, and others, can spur important economic and community development that is sure to last far beyond the program years.” 

The newest zones will take effect Jan. 1. The Richmond picks were among 153 new designations across Virginia as a whole. 

Contact Reporter Sarah Vogelsong at svogelsong@richmonder.org