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Opportunity Zones 2.0

Opportunity Zones 2.0

Opportunity Zones (OZ) are designated areas where federal tax incentives encourage private investors to put money into businesses, property development and other projects that can create jobs and stimulate local economies.

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. OZ 1.0 refers to the original Opportunity Zones program created under the Tax Cuts and Jobs Act of 2017. It is a temporary program with sunset dates. OZ 2.0 refers to the permanent version enacted via the One Big Beautiful Bill Act signed into law on July 4, 2025. It institutes rolling designations every ten years, stricter eligibility for governor-nominated census tracts, and new rural investment incentives starting 2027.

EDNM led a collaborative process with Councils of Governments (COGs) that engaged local governments, Tribal nations, developers and other stakeholders to identify the most competitive and investment‑ready tracts. Priority tracts demonstrated clear development potential, supportive local policies, available land or redevelopment opportunities, proximity to economic anchors and alignment with existing incentive programs or community priorities. They selected 65 census tracts for OZ designation. The state’s nominations have been submitted to the U.S. Department of the Treasury for federal approval, the final step toward establishing New Mexico’s Opportunity Zones.