West side of Ephraim designated as ‘Rural Opportunity Zone’
EPHRAIM—A U.S. Census tract on the west side of Ephraim has been nominated to be a Federal Opportunity Zone, a designation that can give people who invest in businesses in the zone significant federal tax breaks.
The zone runs roughly from 100 East west to the Sanpete County Regional Airport. It encompasses most of the 300-plus-acre Ephraim Crossing development, along with land slated to become a new hospital and the site of a future Soapcreek manufacturing plant.
The opportunity zone concept was created by the Tax Cut and Jobs Act of 2017. The goal was to bring investment to low-income communities. Initially, the lead agency was the Internal Revenue Service.
In 2018, a year after the act passed, Ephraim City was designated as a Opportunity Zone. The zone boundaries coincided with the city’s boundaries.
Individuals or businesses anywhere in the United States who had reaped capital gains from sale of stock, property, a company, etc. and faced the prospect of paying capital gains tax, could invest the gains in a business or development within the Opportunity Zone.
If the investor kept the investment for seven years, half of the tax on their original capital gain would be forgiven. If they stayed involved for 10 years, they would be exempt tax on 100 percent of their capital gains.
“This is pretty exciting news,” City Manager Brant Hansen said at the time. “It definitely means investment is coming to Ephraim.”
The Big Beautiful Bill passed July 4, 2025 renewed the program. The new program is called Opportunity Zones 2.0 and is under direction of the U.S. Treasury. And the 2.0 program offers more generous tax break than the 2017 version.
The Treasury Department has designated 147 eligible Census tracts in Utah. The state was permitted to nominate 25 percent of them for final designation.
Based on quantitative analysis and input from cities, counties, economic development organizations and business owners, Gov. Spencer Cox narrowed the 147 tracts down to 37— 27 urban tracts and 10 rural. Locations of the rural tracts included Sanpete, Carbon, Duchesne and Piute counties.
Under the 2.0 program, people with capital gains can invest in what is called a Qualified Opportunity Fund. Such a fund then invests in property, businesses, etc. in an Opportunity Zone.
“Because West Ephraim is rural, funds investing here can put their money into Qualified Rural Opportunity Funds, which carry stronger benefits,” the Camino Verde Group, developer of Ephraim Crossing, says in a press release.
If an investor leaves his money in a Rural Opportunity Fund for five years, 30 percent of his or her original capital gain is not taxed. In urban Opportunity Zones, only 10 percent of the invested gain escapes taxation.
If an investor holds on to his or her Rural Opportunity Fund investment for 10 years, the investor is exempt from capital gains tax altogether.
“The program isn’t only for Wall Street,” the Camino Verde release says. “A local resident or entrepreneur who sells stock, a rental property, land or even an old work truck at a profit can put that capital gain into a new business in West Ephraim, organized as a Qualified Opportunity Fund.
“Tax on the original gain is deferred, and the rural designation erases 30 percent of it after five years. The bigger reward comes later. If the owner builds the business for at least 10 years and then sells it, there is no federal capital gains tax on the growth, whether the business is worth $50,000 or more than $10 million. For a Sanpete County family, that could mean a new shop, restaurant or trade business on Main Street that pays off for a lifetime.”
The release quotes Mike Ballard, managing partner of the Camino Verde Group. “Ephraim Crossing already has a hospital, a manufacturing anchor and new infrastructure on the way,” Ballard says. “Now an investor who helps build the next grocery store, hotel or industrial building here can keep more of their gains while helping Sanpete County grow jobs and housing for the families who live here.”