New Jersey has submitted 130 census tracts to the U.S. Treasury for the next round of the federal Opportunity Zone program, the maximum number the state is allowed to nominate under federal law. The nominations, covering areas in 60 municipalities across the state, include sites in Morristown, Mount Olive and Parsippany-Troy Hills in Morris County.
The state submitted the 130 tracts on Oct. 28, according to Morristown Minute. Gov. Mikie Sherrill announced the nominations last week, and a New Jersey Department of Community Affairs announcement confirmed that federal law allows the state to nominate up to 130 of its 518 eligible census tracts for the designation, as reported by Real Estate NJ.
Crucially, the nominations are not the same as final designations. As of Monday, the U.S. Treasury Department had not yet published its official list for this new cycle, known as OZ 2.0, according to an Opportunity Zone tracker that is monitoring the process nationwide. The tracker noted that Treasury has not published its OZ 2.0 list, so no nominated tract counts as a final zone yet.
What Happens Next in the Designation Process
The Internal Revenue Service has made clear that a state’s nomination does not itself create a designated Qualified Opportunity Zone. Following the nomination process, the Secretary of the Treasury will certify and designate the nominated census tracts, per the agency’s guidance. The government expects to issue additional guidance identifying designated zones before Jan. 1, 2027, the same Real Estate NJ report notes…