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Opportunity Zones 2.0

Opportunity Zones 2.0

The Economic Development Department of New Mexico (EDNM) is initiating a statewide review and information‑gathering process in preparation for Opportunity Zone 2.0 nominations by July 1, 2026.

Opportunity Zones are federally designated census tracts intended to encourage long‑term private investment in economically distressed communities. Originally established under the Tax Cuts and Jobs Act of 2017 and made permanent through the 2025 One Big Beautiful Bill Act, the updated program strengthens requirements to ensure that new development or substantial improvements directly benefit Opportunity Zone communities.

Nationally, Opportunity Zones have become one of the largest economic development incentives, with more than $100 billion invested to date much of it supporting housing, construction, and community serving projects.

Under Opportunity Zones 2.0, the governor may nominate up to 65 census tracts for designation. EDNM is leading a collaborative process together with Councils of Governments (COGs) to engage local governments, Tribal nations, developers and other stakeholders to identify the most competitive and investment‑ready tracts. Priority tracts will demonstrate clear development potential, supportive local policies, available land or redevelopment opportunities, proximity to economic anchors and alignment with existing incentive programs or community priorities.

OZ 2.0 Nomination Timeline

April 6, 2026 — Stakeholder Consultation Begins
EDNM and the Councils of Governments (COGs) begin coordinated outreach to gather input from local governments, tribal nations, utilities, and regional partners on potential census tract nominations.

May 15, 2026 — COGs Submit Proposed Nominations
COGs provide EDNM with their final list of proposed census tract nominations for continued analysis and further consultation.

June 15, 2026 – EDNM Provides Report to the Governor’s Office
EDNM provides list of nominations to the Governor’s Office for continued stakeholder engagement, continued analysis, and overlay of State priorities.

July 1, 2026 — Finalization of 65 Nominated Tracts
EDNM works with the Governor’s Office to finalize the list of 65 census tracts to be submitted for Opportunity Zone 2.0 designation.

Second Half of 2026 — U.S. Treasury Review
The U.S. Treasury Department reviews the nominated tracts and confirms eligibility for Opportunity Zone designation.