Opportunity Zones in San Luis, Arizona

The City of San Luis is positioning itself to attract new private investment through the federal Opportunity Zones (OZ) program. Two census tracts within the City have been nominated for designation under the new Opportunity Zones 2.0 program, which is scheduled to take effect January 1, 2027, following certification by the U.S. Department of the Treasury.

Both nominated census tracts qualify as Rural Opportunity Zones, providing enhanced federal tax incentives designed to encourage long-term investment, stimulate economic development, support business expansion, and create new jobs.

Located along the U.S.–Mexico border, San Luis offers unique opportunities for commercial, industrial, residential, and mixed-use development, supported by significant investments in transportation infrastructure, healthcare, and community revitalization.

San Luis Opportunity Zone Locations

The following census tracts have been nominated for federal Opportunity Zone 2.0 designation:

Census Tract Designation Poverty Rate
04027011403 Rural Opportunity Zone 23.20%
04027011601 Rural Opportunity Zone 25.80%


The nominated tracts include areas associated with existing and planned economic development initiatives, including the modernization of the San Luis I Land Port of Entry, Cesar Chavez Boulevard improvements, downtown revitalization, commercial development, and healthcare expansion.

Upon federal certification, the new designations are expected to remain effective from January 1, 2027, through December 31, 2036.

What Are Opportunity Zones?

Opportunity Zones are federally designated census tracts intended to encourage private investment in economically distressed communities.

Originally established through the Tax Cuts and Jobs Act of 2017, the program was made permanent through federal legislation enacted in 2025. The updated Opportunity Zones 2.0 program provides tax incentives to eligible investors who reinvest capital gains through Qualified Opportunity Funds (QOFs) in designated areas.

Investments may support eligible real estate development, commercial and industrial projects, housing, and operating businesses.

Enhanced Federal Tax Benefits for Rural Opportunity Zones

San Luis's nominated tracts qualify for enhanced rural investment incentives under the Opportunity Zones 2.0 program.

Eligible investors may benefit from:

  • Capital Gains Tax Deferral: Defer federal taxes on eligible capital gains reinvested through a Qualified Opportunity Fund for up to five years, subject to applicable requirements.

  • 30% Basis Step-Up: Qualifying investments held for five years through a Qualified Rural Opportunity Fund may exclude 30% of the original deferred capital gain from federal taxation, compared with the standard 10% benefit.

  • Long-Term Investment Benefits: Investors who maintain qualifying investments for at least ten years may exclude eligible appreciation on their Opportunity Zone investments from federal capital gains taxation.

  • Reduced Improvement Requirements: Qualifying investments in existing buildings within rural Opportunity Zones may benefit from a reduced substantial improvement threshold, making redevelopment and rehabilitation projects more attractive.

These incentives are intended to encourage long-term private investment while supporting business development, job creation, and economic growth.

Property Owners and Businesses: Submit Your Investment Opportunity

The City of San Luis encourages commercial and industrial property owners, landowners, developers, and business owners within the nominated Opportunity Zones to identify potential investment opportunities.

The Arizona Commerce Authority (ACA) is collecting information on properties and businesses that may benefit from Opportunity Zone investment.

Eligible submissions may include:

  • Vacant or undeveloped land

  • Commercial and industrial properties

  • Properties suitable for rehabilitation or redevelopment

  • Residential and mixed-use development opportunities

  • Existing businesses seeking investment for expansion

Property owners and business representatives are encouraged to provide site information, photographs, maps, and available development details to help prospective investors evaluate opportunities.

Submit an Investment Opportunity with Arizona Commerce Authority

Learn More and Explore Opportunity Zones

Arizona Commerce Authority — Opportunity Zones and Nominated Tracts

Arizona Commerce Authority — Investment Opportunities

U.S. Department of the Treasury — Qualified Opportunity Zones

Contact the City of San Luis

The City of San Luis Economic Development Department is available to assist investors, developers, business owners, and property owners interested in exploring Opportunity Zone investment opportunities. Armando Esparza, Director of Economic Development and Government Affairs, also serves as the City's designated Opportunity Zone Navigator, providing guidance on Opportunity Zone locations, potential investment opportunities, and available resources while connecting interested parties with the Arizona Commerce Authority and other relevant partners.

City of San Luis Economic Development Department
1090 E. Union Street
San Luis, AZ 85349

Armando Esparza
Director of Economic Development and Government Affairs
City of San Luis Opportunity Zone Navigator

Email: aesparza@sanluisaz.gov

Disclaimer: Opportunity Zone nominations remain subject to federal certification. Information regarding federal tax incentives is provided for general informational purposes only and does not constitute tax, legal, or investment advice. Eligibility depends on applicable federal requirements, investment structures, and holding periods. Investors and property owners should consult qualified tax and legal professionals.