New Opportunity Zones to bring investment, jobs to NM

State designates 65 tracts in 22 counties for federal tax incentives

SANTA FE - Communities across New Mexico could see new business investment, development and jobs across 65 census tracts selected by the state for Federal Opportunity Zone nominations.

Opportunity Zones provide federal tax incentives to encourage private investment in businesses, property development and other projects that can create jobs and stimulate local economies. Under the program, investors who reinvest capital gains in an Opportunity Zone can defer taxes on those gains for five years. Investors who hold the investment for at least five years have 10% of the original gain excluded from taxation, or 30% for investments in rural Opportunity Zones. Investors who hold the investment for 10 years or longer pay no federal tax on any new gains the investment earns, for up to 30 years.

"New Mexico is leading the way in attracting new industries and investment, and we're making sure more communities can share in that success," said Gov. Michelle Lujan Grisham. "These Opportunity Zones give great businesses another reason to choose New Mexico and bring good-paying jobs to places where those opportunities are needed most."

Opportunity Zones complement New Mexico's broader economic development strategy, including investments in infrastructure, Economic Development New Mexico's Site Readiness Program, New Mexico Finance Authority's Opportunity Enterprise Programs and other business development tools to help communities compete for new businesses and jobs.

The selected parcels span 22 counties. Approximately 230,000 New Mexicans, or nearly 11% of the state's population live in the 65 selected census tracts. More than half (55.4%) of the selected areas are rural, and more than 90% have poverty rates of 20% or higher. The selections are intended to help direct private investment toward communities historically challenged in attracting new development.

"We can accomplish great things when we're all working toward the same goals," said Economic Development (EDNM) Cabinet SecretaryRob Black. "Our local partners helped us identify which designations could do the most good, and now we have another tool to help bring investment and jobs to those communities."

EDNM worked with the state's seven regional Councils of Government and local governments to identify the proposed zones, drawing on their knowledge of local needs, priorities and development opportunities.

Highlights of New Mexico's selections include:

• Statewide reach: The 65 census tracts across 22 of New Mexico's 33 counties.
• Rural opportunities: More than half (55.4%) of the selected tracts are in rural areas.
• Focus on economic need: More than 90% of the selected tracts have poverty rates of at least 20%, and nearly half have poverty rates of 30% or higher.
• Geographic distribution: Bernalillo County has the most selected tracts at 21, followed by McKinley with five, and Chaves, Doña Ana and Otero with four each.
• Tribal communities: Eight selected tracts include portions of Tribal areas, potentially expanding investment opportunities in and around those communities.

The state selected the 65 tracts from 257 eligible areas and submitted its nominations to the U.S. Department of the Treasury for federal designation, the final step toward establishing New Mexico's Opportunity Zones .

"Opportunity Zones 2.0" refers to the permanent program established under the One Big Beautiful Bill Act of 2025, replacing the original, temporary Opportunity Zones 1.0 program created in 2017.

A list of New Mexico's selected Opportunity Zones, along with additional information about the program, is available at edd.newmexico.gov/opportunity-zones.