Key takeaways
- The chief executive of each state, usually the governor, nominates tracts; Treasury certifies and designates them under IRC §1400Z-1.
- Only tracts that meet the low-income community test can be nominated, and a state may designate the greater of 25% of its eligible tracts or 25 tracts.
- The nomination window opened July 1, 2026 for 90 days, to September 28, 2026, with one 30-day extension to about October 28, 2026.
- Federal law sets no selection criteria beyond eligibility and the cap, so states weigh poverty, jobs, infrastructure, development potential and public comment.
- Designated zones take effect January 1, 2027 and stay fixed through December 31, 2036; the next designation cycle begins July 1, 2036.
Who chooses Opportunity Zones?
The governor (or chief executive) of each state, the District of Columbia and each territory nominates the tracts, and the Secretary of the Treasury certifies and designates them.1 Treasury cannot add tracts a governor did not nominate. A governor cannot designate a tract that fails the federal eligibility test, except by proving with tract-level data that it qualifies.3
Governors submit nominations through the CDFI Fund's Opportunity Zone Nomination Tool, an online form in its Awards Management Information System (AMIS).18 Treasury announced on July 1, 2026 that the new designation cycle was open.16 The CDFI Fund supports the nomination and designation process. The IRS administers the tax rules.
Fig. 1How a census tract becomes an Opportunity Zone
- Rev. Proc. 2026-14Treasury eligible list25,332 low-income tractsPublished list
- State screeningData, local input, criteriaShortlist
- Governor nominationUp to 25% of eligible tractsFiled in AMIS
- Treasury certificationWithin 30 days, extendable 30Certified
- Designated zoneJan. 1, 2027 to Dec. 31, 2036
What limits does federal law put on a governor's choices?
Federal law sets two hard limits: every nominated tract must be a low-income community, and the total cannot exceed the greater of 25% of the state's eligible tracts or 25 tracts.1,17
| Rule | What it means | Source |
|---|---|---|
| Eligibility | Tract MFI at most 70% of area MFI, or poverty at least 20% with MFI at most 125% of area MFI | IRC §1400Z-1 |
| Cap | Greater of 25% of eligible tracts or 25 tracts | IRC §1400Z-1 |
| No contiguous tracts | A non-qualifying tract cannot be designated because it borders a qualifying one | IRC §1400Z-1 |
| Off-list tracts | Allowed only with tract-level data proving eligibility | Rev. Proc. 2026-14 §5.04 |
| Current zones | Do not count against the cap for the period starting Jan. 1, 2027 | Notice 2026-40 |
| Rural share | No rural quota | Statute as enacted |
The off-list route is narrow in practice. Arizona reportedly had three off-list tracts rejected.7 Puerto Rico now nominates under the same 25% cap as the states. Eligibility is measured with the 2020 to 2024 American Community Survey five-year data, so a governor's room to choose depends on how many tracts that data qualifies. See which census tracts qualify for the tests in detail.
North Carolina illustrates the math: the state could nominate up to 202 of its 807 eligible low-income tracts.11 A small state with fewer than 100 eligible tracts still gets 25, because the floor applies.
What criteria do governors use to pick Opportunity Zones?
Federal law sets no selection criteria beyond eligibility and the cap, so each state decides what to weigh. Most states publish a scoring approach or a list of factors, and most take public comment.
Vermont's published factors are typical: poverty and unemployment rates, population, the number of businesses and private-sector jobs, available infrastructure, and the development potential of each tract.9 Other states add local government requests, alignment with existing economic development plans, and evidence of an investment pipeline.
Fig. 2A common way states think about candidate tracts
Need, little readiness
Often chosen for equity reasons; may see little capital
Priority candidates
High need with sites, infrastructure and projects
Usually passed over
Eligible but low need and few prospects
Contested
Strong deal flow; critics question the need
Low ← Investment readiness → High
- Distress data: poverty, unemployment, income and population loss.
- Readiness: zoned land, utilities, broadband, transportation and identified projects.
- Geographic balance across regions, including rural counties.
- Local support: requests from counties, cities and tribes.
- Fit with state strategy, such as industrial corridors or downtowns.
Do states take public comment on Opportunity Zone nominations?
Most did. States opened comment windows on draft lists or invited local governments to request tracts before the governor's final nomination.
| Jurisdiction | Process | Source |
|---|---|---|
| California | Online public comment from Aug. 3 to Aug. 28, 2026; commenters pick a tract and state support or opposition | GO-Biz |
| North Carolina | Public comment window extended to June 21, 2026; up to 202 of 807 eligible tracts | NC Commerce |
| District of Columbia | Comments on preliminary recommendations through Aug. 7, 2026 | Holland & Knight |
| Vermont | Proposed 25 tracts and sought feedback before nominating | VermontBiz |
| Ohio | Local input process for townships and other local governments | Ohio Township Association |
The California process asked commenters to select a single census tract and submit a comment in support or opposition.10 North Carolina extended its window to give communities more time.11 The District of Columbia released preliminary recommendations and took comments through August 7, 2026.12 Ohio opened a local input process for townships.19
When do governors have to nominate Opportunity Zones?
Governors had 90 days from the July 1, 2026 determination date, to September 28, 2026, with one 30-day extension to about October 28, 2026.2,5 Sources differ on whether the extension had to be requested or was given automatically to every jurisdiction that did not opt out.6,7
Fig. 3The 2026 nomination cycle
Apr 2026
Rev. Proc. 2026-14
Procedures and eligible list
Jul 1, 2026
Window opens
Determination date
Jul 9, 2026
Arizona files
An early filer
Sep 28, 2026
Base deadline
At least 16 of 56 had filed
About Oct 28, 2026
Extended deadline
30-day extension
Jan 1, 2027
Zones take effect
Through Dec. 31, 2036
After certification, the designations run for the full 10-year period; the statute provides no mid-cycle nomination window. The next determination date is July 1, 2036, and the cycle repeats every 10 years.1
Which states have nominated their Opportunity Zones so far?
As of October 20, 2026, at least 16 of 56 eligible jurisdictions had filed nominations, Treasury had begun certifying, and no consolidated national list had been published.7,8
| State | Reported status | Tracts |
|---|---|---|
| Arizona | Filed July 9, 2026 | About 122 to 125 |
| Idaho | Reported certified by Treasury (Oct. 2, 2026) | 25 |
| Washington | Governor announced nominations Oct. 8, 2026 | 99 |
| Texas | State nomination list published | 605 |
| Indiana | Listed as nominated by a private tracker | 126 |
| North Carolina | Listed as nominated by a private tracker | 202 |
| South Carolina | Listed as nominated by a private tracker | 112 |
The Idaho certification was reported by the Idaho Business Review.15 Washington's 99 tracts were announced by the governor's office, and Texas published its list on the governor's site.13,14 Other counts come from the OpportunityZones.com tracker, which estimates about 6,575 designations nationwide.8 Treat tracker figures as estimates until Treasury publishes the certified list. Track the latest in the new Opportunity Zone maps taking effect in 2027.
How do data centers figure in governors' Opportunity Zone choices?
Data centers can shape the map in both directions. A rural tract next to high-voltage transmission or a retired power plant may score well on readiness and offer a real project. At the same time, several governors restricted state data center incentives in 2026, and federal bills introduced in September 2026 would exclude data centers from Opportunity Zone benefits. Those bills are proposals, not law.
For developers and communities, the lesson is to engage early in the state process with specific evidence: the site, the power plan, the jobs and tax base, and local government support. Once the list is certified it holds for 10 years. See Opportunity Zones for economic developers and communities and community engagement for Opportunity Zone data centers.4
Common questions
Can a governor nominate a tract that is not on Treasury's eligible list?
Only by providing tract-level data that shows the tract meets the low-income community definition, under Rev. Proc. 2026-14 §5.04. Arizona reportedly had three such off-list tracts rejected.
How many Opportunity Zones can a state have?
The greater of 25% of its eligible low-income community tracts or 25 tracts. Zones on the current map do not count against the cap for the period that begins January 1, 2027.
Is there a requirement to pick rural tracts?
No. The statute sets no rural quota. The program encourages rural investment through the 30% step-up for Qualified Rural Opportunity Funds and the 50% substantial improvement threshold instead.
Can a governor change the list after Treasury certifies it?
The statute provides no mid-cycle process for doing so. Certified designations run from January 1, 2027 through December 31, 2036, and the next nomination cycle begins on the July 1, 2036 determination date.
Who do I contact to suggest a tract?
The governor's office or the state economic development agency running the process. The CDFI Fund directs public questions about the nomination cycle to each state's governor's office. For 2027 zones most comment windows had closed by October 2026.
Sources
Every numbered note in this guide links to the source below.
- 1.Office of the Law Revision Counsel, “26 U.S.C. 1400Z-1, Designation,” 2025. uscode.house.gov
- 2.Internal Revenue Service, “Treasury, IRS provide guidance to States for nominating census tracts as qualified opportunity zones,” 2026. irs.gov
- 3.Internal Revenue Service (copy posted by the State of Alaska), “Rev. Proc. 2026-14, Internal Revenue Bulletin Part III,” 2026. aws.state.ak.us
- 4.ArentFox Schiff, “IRS Releases Rev. Proc. 2026-14: New Roadmap for OZ 2.0 Designations,” 2026. afslaw.com
- 5.KPMG, “Rev. Proc. 2026-14: State procedures for nominating census tracts to be designated as QOZs,” 2026. kpmg.com
- 6.EY Tax News, “IRS describes requirements for nominating population census tracts as 2027 Qualified Opportunity Zones,” 2026. taxnews.ey.com
- 7.OpportunityZones.com, “OZ 2.0 Nominations: Where Things Stand After the 90-Day Deadline,” 2026. opportunityzones.com
- 8.OpportunityZones.com, “OZ 2.0 State Tracker,” 2026. opportunityzones.com
- 9.VermontBiz, “State announces Opportunity Zone recommendations,” 2026. vermontbiz.com
- 10.California Governor's Office of Business and Economic Development, “Opportunity Zones Public Comment Period FAQ,” 2026. business.ca.gov
- 11.North Carolina Department of Commerce, “NC Commerce extends public comment period to help identify new Opportunity Zones in North Carolina,” 2026. commerce.nc.gov
- 12.Holland & Knight, “District Begins OZ 2.0 Designation Process, DMPED Releases Preliminary Recommendations,” 2026. hklaw.com
- 13.Washington Governor's Office, “Governor Ferguson selects 99 Opportunity Zones to encourage private investment,” 2026. governor.wa.gov
- 14.Office of the Texas Governor, “Federal Opportunity Zones in Texas,” n.d. gov.texas.gov
- 15.Idaho Business Review, “US Treasury approves Idaho Opportunity Zone 2.0 nominations,” 2026. idahobusinessreview.com
- 16.U.S. Department of the Treasury, “Treasury Opens the New Designation Cycle for Opportunity Zones,” 2026. content.govdelivery.com
- 17.Economic Innovation Group, “Opportunity Zones 2.0: Where Things Stand After the One Big Beautiful Bill Act,” 2025. eig.org
- 18.Federal Register, “CDFI Fund notice regarding the Opportunity Zone Nomination Tool, document 2026-09437,” 2026. public-inspection.federalregister.gov
- 19.Ohio Township Association, “Opportunity Zones 2.0: Local Input Process Opens,” 2026. ohiotownships.org
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