On July 1, 2026, the Qualified Opportunity Zones (QOZs) 2.0 nomination process formally kicked off. The process requires governors of each state and U.S. territory to nominate low-income census tracts to be certified as QOZs. These new 10-year tracts will take effect January 1, 2027, and last until December 31, 2036.
Since new designations will occur only once every 10 years, jurisdictions that do not nominate an eligible tract during this window will not have another opportunity to do so until the next designation cycle, after 2036. As such, time is of the essence for anyone aiming to include a tract on a governor’s list for possible designation, particularly if you:
In April of this year, the IRS released Rev. Proc. 2026-14, listing all the census tracts for each state and U.S. territory eligible to be nominated and certified as a QOZ under the program’s 2.0 requirements. This is the list each governor will essentially use to create his or her state’s nomination list.
The Rev. Proc. does allow for a governor to submit a census tract not on the IRS list currently, as long as supporting data is provided as to why it meets the requirements and should qualify.
While each state has discretion for how they go about the nomination process, some states are soliciting information from interested parties to help them understand where current QOZ projects are located and where future QOZ projects are being contemplated.
For example, interested parties who wish to nominate an Ohio census tract outside the IRS list for consideration must do so no later than July 10, 2026, using Ohio’s online nomination form. If the state does not receive a nomination form by this date, the census tract will not be considered. Note, outside information cannot be submitted in place of the online form.
Visit the Ohio Department of Development’s website for more information on the Ohio Opportunity Zones Tax Credit Program and census tracts eligible for certification under QOZ 2.0.
The QOZ 2.0 nomination process as a whole will last 90 days. The governors of each state and U.S. territory have until September 28, 2026, to submit their census tract nomination list to the Department of Treasury for designation and certification as QOZs. There is a 30-day extension available that could take the governor’s portion of the process out until October 28, 2026. From there, the Department of Treasury has 30 days to approve the nominations, also with a 30-day extension available. That means the latest we will know which census tracts comprise the QOZ 2.0 map is December 28, 2026.
Given that each governor can only nominate up to a maximum of 25% of eligible tracts (if a state has fewer than 100 eligible tracts, 25 can be nominated), there will be tracts left off the list simply due to the statutory limitation — not because they aren’t worthy of investment. Advocacy will play an important role and shouldn’t be underestimated. We highly encourage QOZ stakeholders to become active participants in this round’s nomination and designation process.
If you are interested in nominating a new census tract, check your state’s deadlines and act soon!
Contact Angel Rice or a member of your service team to discuss this topic further.
In this blog Cohen & Co is not rendering legal, accounting, investment, tax or other professional advice. Rather, the information contained in this blog is for general informational purposes only. Any decisions or actions based on the general information contained in this blog should be made or taken only after a detailed review of the specific facts, circumstances and current law with your professional advisers.