USVI's 18 Opportunity Zone nominations await Treasury decision

The U.S. Virgin Islands is awaiting a Treasury Department decision on nominations covering all 18 territory census tracts currently eligible for the next round of the federal Opportunity Zone program. The Bryan administration submitted the list July 24; the application is pending and should not be described as an approved map.

The nominations include nine tracts on St. Croix, eight on St. Thomas and one on St. John. If Treasury approves them, the new designations are expected to take effect January 1, 2027 and would reach areas including Christiansted, Frederiksted, the South Shore industrial corridor, Cruz Bay, Tutu, Smith Bay, Crown Bay, Bovoni, Charlotte Amalie and Havensight.

Opportunity Zones are not direct grants to communities. They offer federal tax advantages to qualifying private investments made through specialized funds, potentially supporting housing, businesses and redevelopment while also creating a risk that benefits concentrate in projects or neighborhoods already positioned to attract capital.

A recent Government Accountability Office review found that Virgin Islands officials knew of fewer than five investments under the original program. That does not prove fewer than five occurred: federal reviewers said incomplete reporting made local investment and community outcomes difficult to measure.

The revised federal program adds reporting requirements intended to show where money is invested and what it produces. Until Treasury acts, investors, property owners and residents should treat the 18 tracts as nominations rather than final designations.