2026 Local Input
Governor Walz is charged with designating Opportunity Zones from among Minnesota's qualifying census tracts, currently estimated at 289 eligible census tracts. In Minnesota, we feel strongly that local communities have the on-the-ground expertise to recommend which eligible census tracts in their county, city, tribal land or region should be designated Opportunity Zones. That's why we are asking cities of the first class, counties, and tribal government to prioritize and rank census tracts in their city, county or tribal area that are eligible to be Opportunity Zones.
Local Decision-Makers:
Minnesota's four cities of the first class are being asked to prioritize and rank Opportunity Zones within their city's boundaries and will be strongly encouraged to collaborate with the County in which they are located in providing feedback. As of the 2020 federal decennial census, first-class cities are Minneapolis, St. Paul, Rochester and Duluth.
Minnesota's counties with eligible census tracts are being asked to prioritize and rank eligible census tracts within their County. Counties will be strongly encouraged to collaborate and may submit their responses in coordination with other geographic areas. Counties will be encouraged to work together, or if they agree, a larger regional governance body such as a regional development commission can submit responses on behalf of counties in the region.
Minnesota's eleven tribal nations are being asked to prioritize and rank eligible census tracts within their reservation or community. Tribal nations are encouraged to collaborate with the counties in which their lands are located, and tribal nations may collaborate with counties to submit responses or submit on their own.
Timeline
Local decision-makers will have 60 days to provide their rankings to DEED and Minnesota Housing:
- Initial information distributed to local decision-makers: May 1, 2026
- Deadline to receive rankings from local decision-makers: June 30, 2026
- Recommendation due to Treasury September 28, 2026 with an extension potentially available for 30 days (October 28, 2026).
Process to Prioritize and Rank Opportunity Zones
The map found here: (https://www.arcgis.com/apps/dashboards/c473c71f0704408f934fbdc342caf1f1) shows the eligible census tracts in your county/city/tribal area or region. We need you to work collaboratively to prioritize and rank your eligible census tracts for nomination by Governor Walz as an Opportunity Zone.
What we are asking for:
Of the eligible census tracts in your city/county/tribal land, we need input from you on which should be included in the final list for nomination by Governor Walz for Minnesota.
The Application Spreadsheet includes three (3) tabs:
- Applicant Info
- Narrative
Principles to Prioritize and Rank Opportunity Zones:
Local decision-makers are asked to explain how the following principles lead them to their ranking of eligible census tracts:
- Needs of the low-income community and other partners serving the zone including data about the unemployment rate, high poverty rate and low median income
- Potential for positive impact to further equity and inclusion and minimize displacement and gentrification
- Commitment(s) to support the zone by industry, education, nonprofits and governments including ongoing collaborations (i.e. promise zones, empowerment zones and renewal communities)
- Development possibilities within the zone in the next 5 years including affordable and workforce housing and economic development
- Engagement with organizations who have indicated an interest in creating Opportunity Funds
- Businesses and emerging businesses with investment potential in the zone
- Potential positive impact the zone could have on the most distressed communities
- Highlight any existing OZ projects in your area that have occurred during the first round of the program.
Collaboration:
- Outline how you collaborated and received input from community, nonprofit, industry and business partners as well as the residents of the communities most in need of investment in making your recommendations.
Opportunity Funds:
- The promise of Opportunity Zones can only be met if Opportunity Funds are created that deploy private investment into Opportunity Zones. We strongly encourage you to reach out to any entities (i.e. community banks, foundations, CDFIs, CDCs) that may be working to create an Opportunity Fund as you create your priorities. While this is very early in the process, please share with us any entities you have reached out to about creating Opportunity Funds for Opportunity Zones in your region.
- Rank Eligible Census Tracts:
Please rank your eligible census tracts by priority for designation (ie, if your geographic area has 3 eligible census tracts, rank your first choice 1, second choice 2, 3rd choice 3, etc.).
In the spreadsheet, add or subtract ranking numbers as needed based on the number of eligible census tracts in your geographic area.
Download the Application Spreadsheet
Submission of Input
Please submit the input of your county, city of the first class or Tribal Government by the deadline via email to economicanalysis.deed@state.mn.us.
Frequently Asked Questions (FAQ)
What are Opportunity Zones, and how do they work?
Opportunity Zones are designated areas aimed at stimulating economic development by offering tax incentives to investors who fund projects within these zones. Investors can defer, reduce, and eliminate capital gains taxes by reinvesting in Qualified Opportunity Funds that support real estate or business development in these areas.
What is the process for designating new Opportunity Zones?
Every 10 years, beginning in 2026, Treasury will publish eligible tracts, and states must submit their OZ nominations within a 90-day window starting on July 1. Final designations will be certified by Treasury shortly thereafter.
My city/county/tribal government doesn't have any census tracts eligible for designation. Can I still nominate a census tract?
In the current version of the program, only eligible census tracts may be nominated as Opportunity Zones.
Do Census tracts designated as Opportunity Zones automatically get renewed?
No, previous designations will remain in place until the previous version of the program ends. Census tracts are required to be eligible and nominated by Governor Walz to be Opportunity Zones in the new version of the program, effective January 1, 2027.
What is the impact of Opportunity Zones on Minnesota?
The previous iteration of the program did not require any reporting by investors or projects in Opportunity Zones, so very little concrete information is available. The new iteration of the program has increased reporting requirements, so more information should eventually be available several years from now.
Does DEED, Minnesota Housing, or the Governor's Office recommend investments in Opportunity Zones?
The State of Minnesota (including DEED, Minnesota Housing, and the Governor's Office) has only one role: the initial nomination of eligible census tracts as Opportunity Zones. Beyond that, consult your preferred legal, wealth management, accounting and other relevant advisors.
What definition is used to determine if a census tract is rural or not?
The methodology used to determine rural census tracts is available at: Methodology for Determining Census Tracts Eligible to be Nominated as 2027 Qualified Opportunity Zones Comprised Entirely of a Rural Area
What definition is used to determine if a census tract is eligible for Opportunity Zone designation or not?
The methodology used to determine eligible census tracts is available at: Eligibility Criteria for Determining Census Tracts Eligible to be Nominated as 2027 Qualified Opportunity Zones
