An Idaho state advisory council has forwarded a list of 25 communities across the Gem State to Gov. Brad Little’s office, recommending them for designation under a federal tax incentive program aimed at spurring investment in housing and economic development.
The Idaho Economic Advisory Council submitted its recommendations following a meeting on July 23, selecting from 36 tracts that had been submitted by cities and counties across Idaho. Gov. Little will make the final call on which areas to forward to the federal government, with a hard deadline of September 28 to submit the selections to the U.S. Department of the Treasury.
What Are Opportunity Zones?
The Opportunity Zone program was created during the first Trump administration as part of the 2017 Tax Cuts and Jobs Act. It allows investors to receive tax breaks on capital gains when they direct money into designated low-income or underserved communities, with the goal of encouraging private investment in housing and economic development projects that might not otherwise attract capital. Congress made the program permanent last year through the One Big Beautiful Bill Act, giving communities across the country a long-term framework to attract development dollars.
The advisory council ranked its 25 recommendations primarily by the likelihood of attracting real investment, not simply by community need. Downtown and Main Street revitalization projects received top priority, followed by housing development, and then commercial and industrial growth corridors.
Jerry Miller, the state Department of Commerce Rural Services Manager, noted that the goals were consistent across many of the applications. “A number of the nominations mentioned downtown and Main Street revitalization as one of their goals for having an Opportunity Zone,” Miller told the Bonner County Daily Bee.
Boise Tracts Lead the List
All three of the council’s top-ranked recommendations are located in Boise. The downtown and West Main Street area — which encompasses Fairview Park, the Idaho State Capitol, and Boise City Hall — earned the top spot. A west Boise corridor including Boise Towne Square Mall and the Fairview Avenue and Milwaukee Street corridors ranked second. The third Boise tract centers on South Broadway Avenue, home to Manitou Park and served by Valley Regional Transit’s Broadway bus line.
Another Boise tract is anchored by Boise State University, which generates an estimated $2.2 billion in annual economic impact for the region. A separate south downtown area encompasses Ann Morrison Park, Julia Davis Park, Rhodes Skate Park, the Boise Zoo, the Boise Art Museum, and the Idaho State Museum — a cluster of civic amenities that could make the district attractive for adjacent housing and hospitality investment.
Garden City, which sits adjacent to Boise and is within biking distance of both Boise State University and the College of Western Idaho campus, also made the recommended list.
North Idaho and Statewide Communities Included
North Idaho is represented on the list through a tract in Coeur d’Alene, which was submitted jointly by Kootenai County and the Coeur d’Alene Tribe — a notable partnership between local government and tribal leadership. Post Falls also earned a recommendation, with its tract centered at the busy interchange of Interstate 90 and Highway 53, a corridor that has seen significant commercial growth in recent years.
Several communities across southern and eastern Idaho also made the cut. Burley’s recommended tract includes its city hall, courthouse, jail, fairgrounds, airport, schools, and parks. Caldwell’s tract highlights Indian Creek Plaza, the College of Idaho, and the Canyon County Fairgrounds. Nampa’s downtown tract encompasses city hall, the public library, and Canyon County government buildings. The Emmett tract includes the Gem County courthouse, while Pocatello’s recommendation covers its historic downtown, a river greenway, public schools, parks, and the Marshall Public Library.
Idaho is not alone in pursuing these designations. Similar tax incentive strategies have drawn scrutiny elsewhere in the state. An earlier review of Idaho data center tax breaks raised questions about public returns and job creation from targeted investment programs — a dynamic that policymakers will likely keep in mind as Opportunity Zone investments begin flowing into designated communities.
What Comes Next
Governor Little must review the advisory council’s 25 recommendations and submit Idaho’s final selections to the U.S. Department of the Treasury no later than September 28. Once designated, the zones would be open to investors seeking qualified opportunity fund investments, with tax advantages intended to hold capital in place for longer-term community development. Local officials in recommended communities — including those in North Idaho — will be watching closely for the governor’s decision in the coming weeks.