Union City Selected for Federal Opportunity Zone Program

UNION CITY — Union City has been selected for the next round of the federal Qualified Opportunity Zones program, becoming the only rural municipality in Erie County to receive the designation.

The new designation, which takes effect Jan. 1, 2027, will remain in place through Dec. 31, 2036. It is part of an expanded federal program intended to encourage private investment in economically distressed communities through tax incentives for investors.

Borough Manager Cindy Wells discussed the selection during the Nov. 9 Borough Council meeting, explaining that Union City had first been selected at the state level before receiving final federal approval.

“Union City Borough was the only rural municipality in Erie County,” Wells said. “So Erie City, Wesleyville Borough, and Union City Borough are the three in Erie County that have been selected, and this is good for the next 10 years.”

According to Erie County Executive Christina Vogel, the U.S. Department of the Treasury and the Internal Revenue Service approved nine designated census tracts in Erie County.

“This is a transformative milestone for the economic future of our entire region,” Vogel said. “By expanding Opportunity Zones beyond the urban footprint, we are positioning Erie County to attract private-sector investment and giving our communities the tools they need to grow and thrive.”

Additionally, U.S. Rep. Mike Kelly announced that a total of 18 new Opportunity Zones have been designated across the six counties in Pennsylvania’s 16th Congressional District.

“Opportunity Zones have been an incredible success in communities across the country since they were first created in the 2017 Tax Cuts & Jobs Act,” Kelly said. “Now, thanks to the passage of the Working Families Tax Cuts last year, rural communities across our region will be able to benefit, as well.”

Kelly said the expanded program allows rural communities, cities or towns with populations under 50,000, to participate in opportunities previously more closely associated with urban areas.

How the program works

Opportunity Zones were established through the federal Tax Cuts and Jobs Act of 2017 as an economic development tool. The program is designed to encourage investors to put money into businesses and properties located in designated low-income communities.

Rather than providing direct government grants to municipalities, the program uses federal tax incentives to encourage private investment. Investors can receive certain tax benefits when they place eligible capital gains into Qualified Opportunity Funds. Those funds, in turn, invest in businesses or property located within designated Opportunity Zones.

The intent is to direct private capital toward communities that might otherwise have difficulty attracting investment, with the goal of supporting business development, property improvements, job creation and broader economic growth.

The new round of designations was authorized through the Working Families Tax Cuts legislation enacted in 2025. The law made the Opportunity Zone program permanent, established a new designation cycle every 10 years and expanded incentives for qualifying rural investments.

To be considered for designation, an area must meet federal eligibility requirements, including criteria identifying it as a low-income community. States nominate eligible census tracts, with the U.S. Treasury Department responsible for certifying and designating the selected areas. The expanded program also provides enhanced investment benefits for eligible rural areas through Qualified Rural Opportunity Funds.

Local effort behind the designation

Wells credited several people and organizations with helping Union City secure its selection.

She said the Erie County Executive’s office hired someone specifically to work on the Opportunity Zone program and identified Tim Wachter as being heavily involved in putting the program together. Wachter has previously served as Union City solicitor.

Wells also credited Steve Bishop of the Union City Community Foundation for preparing and presenting information about the community.

“Tim was the one that put the program together,” Wells said. “And then Steve Bishop with the Union City Community Foundation was involved.”

Wells said Bishop prepared the information outlining what Union City had to offer and presented it as part of the selection process.

“The county’s office was impressed by what Union City had to offer and what was presented. So we’re happy to say that we got it,” Wells said.

Building on earlier investment

Erie County officials pointed to the first phase of the Opportunity Zones program as an example of the potential impact. According to the county, more than $400 million in Opportunity Zone investment was generated in Erie County during the program’s initial phase, which included designated areas in the City of Erie.

The county said it hopes to build on that experience as the expanded program opens opportunities to additional communities.