Alexandria residents will see new tax‑incentive districts when three additional Opportunity Zones become active on Jan. 1, 2027, a move intended to draw long‑term private capital into low‑income census tracts, according to ALXNow.
The U.S. Department of the Treasury confirmed approval of all 153 Opportunity Zones requested by Virginia, including the three new zones in Alexandria’s West End. The designations were announced by Gov. Abigail Spanberger (D) on Friday, Nov. 6.
The new zones are defined by specific boundaries:
- One zone borders N. Beauregard Street, Holmes Run, I‑395 and Seminary Road in Alexandria West.
- A second zone borders I‑395, Holmes Run Parkway and Duke Street west of N. Paxton Street in the Landmark area.
- The third zone borders I‑395, Duke Street, S. Van Dorn Street and Yoakum Parkway, also in Landmark.
These additions join three existing Opportunity Zones approved in 2018: a tract between W. Glebe Road, Four Mile Run and Richmond Highway in Arlandria; a zone between N. Beauregard Street, Holmes Run, the city limits and Seminary Road in Alexandria West; and a district between Duke Street and Holmes Run east of N. Ripley Street in Landmark.
Opportunity Zones, created by the 2017 Tax Cuts and Jobs Act, allow investors to defer capital‑gain taxes, step‑up previously earned gains, and exclude taxable income on new gains generated within the zones. Local officials submitted the eligible census tracts with data on development activity, zoning, community support, feasibility and investor interest. The Virginia Department of Housing and Community Development and the Virginia Economic Development Partnership reviewed the submissions, according to Spanberger’s office, to evaluate investment potential and ensure equitable distribution across regions.
Spanberger highlighted the economic impact of the designations, saying, “I worked closely with local leaders across Virginia to make sure we supported the priorities that mattered most to local communities. I am excited to see all of my recommendations accepted by the federal government, and I look forward to seeing the new investment and economic opportunity this will bring to our Commonwealth.”
One of the newly designated zones includes the former Landmark Mall site, which is being redeveloped into the WestEnd mixed‑use project anchored by an Inova Alexandria Hospital campus. The project is expected to bring medical services, retail, and residential units to the area, aligning with the Opportunity Zone’s goal of revitalizing under‑invested neighborhoods.
What’s next: The Opportunity Zones will officially take effect on Jan. 1, 2027. Developers and investors can begin structuring projects to qualify for the federal tax benefits after that date. City officials plan to hold informational sessions later this year to guide local businesses and community groups on how to leverage the new designations.
Sources: alxnow.com
