SECTION 3. IDENTITY OF LICs

FOR DESIGNATION AS 2027 QOZs

.01 Number of LICs eligible for desig- nation as 2027 QOZs .

(1) In general . Based on the 2020-2024 American Community Survey (ACS) 5‑Year and the 2020 Decennial Census of Island Areas (DECIA) data sets from the Bureau of the Census (Census Bureau), which are public, online resources, the Treasury Department and the IRS have identified 25,332 population census tracts that are LICs eligible for nomination as a 2027 QOZ. Of those population census tracts, 8,334 tracts are comprised entirely of a rural area. A list of population census tracts eligible for nomination as a 2027 QOZ, including those comprised entirely of a rural area, is provided in the Appendix to this revenue procedure. The 2020-2024 ACS 5-Year and 2020 DECIA data sets are the data sets used to determine the eligible population census tracts that are LICs eligible for nomination as 2027 QOZs contained in the Appendix to this revenue procedure because they provide the most accurate, up-to-date, and consistent data necessary to provide the State CEOs with a list of eligible LICs that may be relied upon to nominate as 2027 QOZs. The 2020-2024 ACS 5-Year data set is the primary data set and the 2020 DECIA data set is only used for the territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands for which ACS data is not available. The 25-percent limitation for a State is determined based on the 2020-2024 ACS 5-year and 2020 DECIA data sets.

(2) Areas within the boundaries of QOZs listed in Notice 2018-48 and Notice 2019-42 that are eligible for nom- ination as a 2027 QOZ . A population census tract that contains all or part of

the geographic area of a QOZ listed in Notice 2018-48 and Notice 2019-42 is eligible to be nominated as a 2027 QOZ only if the population census tract is an LIC under § 1400Z-1(c)(1) and without regard to whether all or part of the geographic area was designated as a QOZ under prior § 1400Z-1.

(3) Boundaries of eligible population census tracts to be designated as 2027 QOZ . The 2020-2024 ACS 5-Year and 2020 DECIA data used in determining eligible population census tracts is collected from the geographic areas based on the population census tract numbers and boundaries established for the 2020 decennial census. Because these data are used to establish boundaries for eligible population census tracts that are designated as 2027 QOZs, such boundaries are controlling and not subject to change during the 2027 QOZ designation period.

.02 Information Resource . The list of population census tracts eligible for nomination as a 2027 QOZ provided in the Appendix to this revenue procedure will also be included in a public, online resource (Information Resource). The Information Resource will include detailed mapping that makes it possible to see the exact location of every tract listed in the Appendix to this revenue procedure and to view a variety of demographic information for each eligible tract, including whether a tract is comprised entirely of a rural area.