Banning Mayor Says Opportunity Zones Could Shape The Next 10 Years Of Investment

BANNING, CA —The City of Banning is one of many California cities that could be vying for opportunity zones after officials submitted recommendations to the state, which the mayor said could shape the next 10 years of investment in the city.

The opportunity zones program is a federal tax incentive established by the 2017 Tax Cuts and Jobs Act to spur investment in economically-distressed communities. Private investments made through special funds in opportunity zones can potentially defer or eliminate federal taxes on capital gains for investors, according to the California Department of Finance.

The One, Big, Beautiful Bill Act, signed into law on July 4, 2025, made the opportunity zones program permanent with 10-year redesignation cycles — along with changes to the program, including stricter criteria for future designations.

On July 1, Banning's economic development manager submitted the city's local authority recommendation nearly three weeks ahead of the state's July 20 deadline, Mayor Richard Royce said.

The city recommended five eligible census tracts in priority order, which were reviewed by the city's economic development committee on June 25. The committee included Mayor Royce, City Councilmember Leroy Miller, and city staff, Royce said.

A census tract is a small geographic area the U.S. Census Bureau uses to measure demographics such as population, income, housing and employment.

"The idea is simple: make it more attractive to invest here in Banning. Housing, commercial, infrastructure, businesses that create local jobs," Royce said in a video announcement published on Aug. 6.

California currently has 879 opportunity zones, which will remain active through Dec. 31, 2028. Following changes to the program under the One, Big, Beautiful Bill Act, the state is in the process of nominating about 618 new zones, according to the California Department of Finance.

"That means that there's a lot of competition, and communities across California are making their case for inclusion," Royce said.

"We have not been awarded anything. This is a recommendation, not a designation," he added.

The state published its new opportunity zone draft list on Aug. 3, which includes nominated census tracts. The nominations are currently open for a public comment period through Aug. 28. Gov. Gavin Newsom will submit the final selections the U.S. Department of Treasury on Sept. 28.

"There's still several months and several decisions ahead, and some of them are outside of our control. What is within our control is being ready. Ready means our permitting, zoning, and planning processes that can respond when private investment opportunities arise. Ready also means knowing what sites we're marketing and why," Royce said.

The final opportunity zone designations will take place Jan. 1, 2027.