South Carolina Submitted New Opportunity Zone Nominations
Investors and developers should track expanded zones in York, Lancaster, and Chester counties for tax planning.
Updated on Sept. 24, 2026 in Regional Economics
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Governor Henry McMaster submitted federal opportunity zone nominations that would expand designated areas across York, Lancaster, and Chester counties. The program allows investors to deploy capital gains into specific funds for redevelopment projects in distressed areas.
Why it matters
By designating these zones, South Carolina aims to leverage tax incentives to drive private capital into lower-income areas. Operators should evaluate how these geographic designations might shift long-term development costs and competitive opportunities in their local markets.
Proposed site expansions cover thousands of acres across three counties, including 52,774 acres in Chester County alone. These nominations build on prior initiatives in Rock Hill that have already facilitated over $500 million in regional development.
The players
Henry McMaster
The Governor of South Carolina responsible for overseeing state economic development strategies and federal program nominations.
U.S. Treasury
The federal department responsible for the final review and approval of state-proposed opportunity zone designations.
The details
The program functions by allowing investors to direct capital gains into specialized funds targeted at redevelopment within state-nominated zones. The U.S. Treasury reviews these nominations to ensure they meet federal distress criteria before tax incentives officially take effect. The recent push follows the One Big Beautiful Bill Act, which codified the permanence of the federal opportunity zone framework.
Timeline
2017: Initial opportunity zone push began.
2025: One Big Beautiful Bill Act signed into law.
September 2026: Governor McMaster submitted new opportunity zone nominations.
2027: New opportunity zones expected to take effect.
Market Landscape
This submission follows the framework established by the One Big Beautiful Bill Act, which confirmed the permanent status of federal tax incentives for distressed areas. The move extends a decade-long cycle of state-level zone updating that occurs every 10 years to reflect shifting economic conditions.
Businesses operating within these proposed zones should monitor Treasury approvals to determine eligibility for tax-advantaged capital deployment. Consult with your tax advisor to assess how potential designation shifts impact your specific property or investment portfolio holdings.
The takeaway
Opportunity zone designations represent a powerful lever for regional capital allocation that operators can leverage for long-term development. Keep watch for the U.S. Treasury's final approval in 2027 to verify if specific parcels of interest are officially included in the new incentive map.
What happens next
The U.S. Treasury is expected to review the nomination package, with new zone designations projected to take effect in 2027.
Further reading
For broader trends in state development and incentive programs, see Regional Economics.
Source note: This article includes information reported by The Herald.
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