A portion of Izard County has been selected for a federal Rural Qualified Opportunity Zone designation that will take effect Jan. 1, 2027, creating a 10-year period for eligible investment projects in the Melbourne area and North Central Arkansas.
Ozarka College said Census Tract 9602 was chosen through the federal Opportunity Zone 2.0 initiative. The designation will remain in effect through Dec. 31, 2036. The tract includes the Melbourne Highway 56/69 Corridor, an area identified for its transportation connections, existing business activity and potential future development.
Investment incentive
The federal Opportunity Zone program is designed to encourage private investment in qualifying communities by providing tax benefits to eligible investors. Investors who place capital gains into Qualified Opportunity Funds may receive certain federal tax benefits when those funds support qualifying investments in designated zones.
For Izard County, the designation creates a framework for eligible investors and developers to consider projects in several parts of the local economy. Ozarka College identified the following areas as potential beneficiaries:
- Housing: Residential construction and other housing projects intended to support population and workforce needs.
- Manufacturing: New manufacturing operations and expansions by businesses already operating in the region.
- Commercial development: New businesses, retail projects and other commercial activity.
- Infrastructure: Improvements that support business operations and future development.
- Workforce development: Training and preparation for employment tied to expanding businesses and industries.
The designation is an incentive for qualifying private investment rather than a commitment to a specific project. Its coverage of the Melbourne Highway 56/69 Corridor gives eligible developers a defined area in which to evaluate projects under the federal program during the designation period.
Opportunity Zone investments generally are made through Qualified Opportunity Funds, which must meet federal requirements for investments in designated areas. The tax benefits described by Ozarka College apply to eligible investors and qualifying projects under those requirements.
The designation begins in 2027 and remains available for the full 10-year period. Ozarka College said the opportunity is intended to support long-term economic growth in Melbourne and throughout North Central Arkansas.
