Seaside gets a new Opportunity Zone and Astoria’s is renewed through 2036
Seaside, Oregon. Photo: NicholasSloan, CC BY-SA 4.0, via Wikimedia Commons.
Clatsop County picked up an economic development tool this fall. Seaside has a brand-new federal Opportunity Zone, and Astoria’s existing zone was renewed, so both cities will have access to the tax incentive through 2036.
The designations come as Oregon moves from the original Opportunity Zone program to a permanent, redesigned version known as OZ 2.0. They are scheduled to take effect Jan. 1, 2027, after federal certification by the U.S. Treasury Department, The Astorian reported. Business Oregon’s final OZ 2.0 designation list includes a Clatsop County tract for each city.
How the zones work
An Opportunity Zone is a census tract where investors can get federal tax benefits for putting capital gains into a Qualified Opportunity Fund. Those funds, in turn, back things like new housing or businesses that hire locally. The designation does not bring direct funding and does not guarantee anyone will invest.
Seaside Finance Director Zach Fleck walked through an example for The Astorian. An investor who sells a $1 million stock holding for $2 million can defer tax on the $1 million gain for up to five years by reinvesting it in a fund. Hold it the full five years, and the tax owed drops by 10% for an urban project. Because Astoria and Seaside count as rural under the new rules, that cut grows to 30%.
What’s different from 2018
The program was rebuilt by the One Big Beautiful Bill Act, signed in July 2025. Zones are now permanent, with new designations every 10 years. Eligibility tightened: a tract needs a poverty rate of at least 20% or a median family income no higher than 70% of the state benchmark, down from 80% under the old rules, said Gail Henrikson, Clatsop County’s community development director.
Oregon’s process was competitive. Business Oregon received 106 local nominations for 58 available census tracts.
In Astoria, the zone covers the Uppertown neighborhood and Tongue Point. Astoria’s original zone, designated in 2018, was due to expire at the end of 2028, so the renewal gives projects a runway to 2036. For Seaside, it is the first time a project there can be backed by a Qualified Opportunity Fund.
What cities can and can’t do
Henrikson said cities do not administer the zones. They can promote them, pair development in a zone with existing incentives, or streamline permitting. “The cities can do as much or as little as they have the capacity to complete,” she said.
Clatsop County Board Chair Mark Kujala called the designations “a significant opportunity” for the county. Whether they bring projects will depend on whether investors and developers see a deal in Seaside and Uppertown. Business Oregon posts the full list and program rules on its Opportunity Zones page.
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