Williamsport and Towanda have been nominated for a new federal Opportunity Zone program to bring investment to low-income neighborhoods.

The two municipalities have been added to the list of census tracts in the state submitted to the U.S. Treasury for inclusion in the program, according to the office of Gov. Tom Wolf.

The program allows private investors to receive tax benefits on unrealized capital gains by investing those gains in qualified census tracts.

“This new federal program is yet another tool our communities can use in its toolbox,” state Sen. Gene Yaw, R-Loyalsock, said. “These Opportunity Zone designations will help build on ongoing community development efforts already taking place.”

The program was created in December with congressional approval of the Federal Tax Cuts and Jobs Act of 2017.

It allowed the governor to designate up to 25 percent of census tracts that either have poverty rates of at least 20 percent or median family incomes of no more than 80 percent of statewide or metropolitan area family income.

A total of 734 eligible low-income census tracts were recommended for designation — 61 percent of the eligible pool.

Gov. Wolf designated 300 tracts based on factors including economic data and local recommendations

Some of the poorest areas of the state were given special consideration, according to officials with the state Department of Community and Economic Development, which administers the program.

Federal approval of the designations is set for mid-May with the rulemaking process to follow determining how funds are created and how businesses, developers and financial institutions can invest in qualified zones.

Williamsport Mayor Gabriel Campana and Towanda officials were not available Monday to comment about the program.