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.
Timing matters here. The U.S. Department of the Treasury says the current nomination period will determine which census tracts become eligible for new investment beginning Jan. 1, 2027. The Opportunity Zone tracker similarly notes that OZ 2.0 starts on that date, and that nominated tracts would take effect then only if Treasury finalizes them. Once designated, zones carry the tax incentive status for 10 years.
How New Jersey Picked Its Nominations
New Jersey compiled its nominations based on community input and analysis, according to a news release cited by Real Estate NJ. The Department of Community Affairs, the New Jersey Economic Development Authority and the Department of State spearheaded the selection process, which included communities in all 20 counties with eligible census tracts. The state engaged each county and eligible municipality over a four-month nomination period, with a public engagement process during the summer, and received letters recommending more than 200 tracts.
The selection process considered housing production, transit access, community recommendations and displacement risk, per the same Morristown Minute report. Real Estate NJ adds that the process prioritized revitalizing legacy cities, transit-oriented development and increased housing access, guided by the New Jersey State Development and Redevelopment Plan and Sherrill's housing and economic development priorities.
“The selections reflect local needs and future development plans, including smart growth, transit-oriented development and environmental protection,” said Shirley Emehelu, acting secretary of state, according to Real Estate NJ. DCA Commissioner Jacquelyn A. Suárez said the program must be rooted in community support for new businesses and housing, adding that the public engagement process enabled underrepresented communities with economic and housing development plans to advocate for selection and organize community partners.
Towns Across the State Named in the List
The nominated tracts touch a broad swath of New Jersey, from Atlantic City, Bayonne, Bloomfield, Bound Brook and Bridgeton to Burlington City, Camden City, Carteret, the City of Orange and Clifton. Also included are Dunellen, East Newark, East Orange, Edgewater Park and Egg Harbor Township, along with Elizabeth, Ewing, Fairview, Garfield and Gloucester Township.
Further nominations include Guttenberg, Hackensack, Hamilton Township, Hillside and Irvington, as well as Jackson, Jersey City, Keansburg, Kearny and Lakewood. Long Branch, Manchester Township, Millville, Morristown and Mount Olive round out another cluster, alongside Neptune Township, New Brunswick, Newark, Newton and Parsippany-Troy Hills.
The list continues with Passaic City, Paterson, Paulsboro, Penns Grove and Pennsauken, plus Perth Amboy, Phillipsburg, Plainfield, Pleasantville and Riverside Township. Also named are Salem City, Sayreville, Seaside Heights, Somers Point and South Hackensack/Teterboro, along with Trenton, Union City, Vineland, Woodbine and Woodlynne. The full list of nominated census tracts is available on DCA's community asset map, per Real Estate NJ.
Officials Tout Investment Potential
Sherrill said Opportunity Zones can attract private investment for housing, stronger local economies and local priorities, and specifically pointed to the potential for the program to support revitalization in Trenton and Atlantic City, according to Real Estate NJ. Evan Weiss, CEO of the New Jersey Economic Development Authority, said Opportunity Zones can promote inclusive economic growth, investment, businesses and housing.
Opportunity Zone tax benefits apply to long-term investments in real estate and operating businesses in qualifying low-income areas. Congress made the program permanent in 2025, according to Real Estate NJ's reporting. Sherrill's team reported that New Jersey Opportunity Zones received investment through 2024 amounting to 78 percent, citing U.S. Treasury Department early results, with investment across the state's Opportunity Zone tracts totaling $3.14 billion and eligible zones averaging $18.6 million in investment.
What the Data Does and Doesn't Show
A study of earlier Opportunity Zones found that about 46% of the zones studied experienced increases in building activity of at least 15%, according to Morristown Minute. But the same study could not determine which construction projects actually used the tax incentive, limiting how much of that building activity can be credited to the program itself.
New Jersey's submission is part of a much larger national push. As of Tuesday, November 3, 2026, the Opportunity Zone tracker listed 3,115 nominated tracts across 24 jurisdictions nationwide, underscoring how many states are racing to lock in the tax-advantaged status before Treasury finalizes its list ahead of the January 2027 start date.
