Birmingham courts developers ahead of Opportunity Zone 2.0 launch

The city of Birmingham is preparing commercial districts, redevelopment sites and residential communities across the city for new economic investment through Opportunity Zone 2.0, a federal economic development program renewed under the One Big Beautiful Bill Act.

The program provides private investors with tax incentives to encourage economic growth and job creation in historically underserved communities identified by state governments. Several Birmingham areas have been identified through the region’s Opportunity Zone application, including Woodlawn, Norwood and the former Carraway Hospital campus, downtown Birmingham, Ensley and the historic Ensley Works site, Smithfield, Titusville and other strategic corridors.

“This is an opportunity to attract new investment to communities that have historically been overlooked and unlock possibilities for transformative growth,” Birmingham Mayor Randall Woodfin said of the program. “But realizing that potential requires more than tax incentives. It requires partnering with competitive development teams and identifying projects that deliver lasting value. We want to attract visionary developers, locally and nationally, who can help create jobs, expand housing opportunities and build wealth in ways that directly benefit Birmingham residents.”

According to city officials, Birmingham's Department of Innovation and Economic Opportunity is "working to connect experienced developers and investors with opportunities throughout the city" ahead of the renewed program's effective date of January 1, 2027.

The city is seeking investment for a variety of potential projects, including the construction of mixed-use developments, commercial and industrial redevelopment, housing, and repurposing vacant or underutilized properties. Other investment opportunities could include business development and projects that "support workforce and neighborhood revitalization."

“Opportunity Zones 2.0 give us another tool to help move investment into communities with significant potential,” said Coreata R. Houser, director of the city’s Department of Innovation and Economic Opportunity. “We are interested in working with experienced developers who understand how to use this tool strategically and who are committed to projects that create sustainable economic opportunities for the communities where they invest.”

City officials are encouraging any developers or investors interested in exploring potential opportunities in Birmingham to connect with the Department of Innovation and Economic Opportunity via [email protected].