The Opportunity Zones program uses tax incentives to encourage private investment in low-income and high-poverty areas. In 2025, H.F. 1 updated the program and made Opportunity Zones a permanent component of economic development policy in the U.S. The next designation cycle will begin on July 1, 2026, when governors will begin nominating a new map of eligible census tracts. Governors will be allowed to select up to 25% of the state’s eligible tracts. The governor has the sole discretion to nominate tracts, and the Secretary of the Treasury will certify those tracts. The new map of Opportunity Zones will go into effect on January 1, 2027, and last for 10 years. The tax benefits of Opportunity Zones 2.0 also take effect on the same day.
MN Department of Employment & Economic Development (DEED) and MN Housing are requesting input from counties, cities of the first class, and Tribal Governments on priorities for designation:
- DEED just rolled out their updated website where you can find out more information.
- Counties, cities of the first class and tribal governments will be able to submit their prioritization of eligible census tracts.
- The deadline for local input submission is June 30, 2026.
- Minnesota has 289 eligible tracts and expects to designate 73 as Opportunity Zones. Minnesota has 59 Counites with an eligible census tract.
- Unfortunately, not all local governments have eligible census tracts. These eligibility criteria are set in federal law and are not flexible.
- 28 Minnesota counties have no eligible census tracts, so no input is required from those counties. Counties with no eligible census tracts include: Carver, Chippewa, Clearwater, Dodge, Grant, Houston, Jackson, Kittson, Lake, Lake of the Woods, Le Sueur, Lincoln, Lyon, Marshall, McLeod, Murray, Norman, Pennington, Pope, Red Lake, Renville, Rock, Roseau, Sibley, Stevens, Wabasha, Watonwan, Yellow Medicine.
For questions about Opportunity Zones or the input process, please contact economicanalysis.deed@state.mn.us.
