Opportunity Zones

In December 2017, legislation authored by U.S. Senators Cory A. Booker (D-NJ) and Tim Scott (R-SC) was passed into law after being incorporated into the Tax Cuts and Jobs Act. The “Opportunity Zones Program” is designed to spur economic development and job creation in designated Opportunity Zones.

Opportunity Zones are low-income census tracts nominated by governors and certified by the U.S. Department of the Treasury allowing investors to direct capital into new projects and enterprises in exchange for certain federal capital gains tax advantages.

Governor Phil Murphy worked directly with U.S. Senator Cory Booker’s office, convened meetings and round tables with mayors throughout the State to receive feedback and input, and met with the New Jersey Congressional delegation to ensure a fair and transparent selection process. New Jersey Opportunity Zones are located in 75 municipalities, representing every county. The Opportunity Zone initiative will be housed at the Department of Community Affairs.

Opportunity Funds

Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. Opportunity Funds provide investors the chance to put that capital to work rebuilding the nation’s low-income rural and urban communities.

Investment Incentives

  • A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.
  • A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.
  • A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).

Opportunity Zones Symposium with
Governor Phil Murphy and U.S. Senator Cory Booker

This event was hosted by Choose New Jersey on July 16, 2018 at Rutgers University-Newark.

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Opportunity Zone Presentations – July 16, 2018

LOCUS Developers

Economic Innovation Group

NEW JERSEY OPPORTUNITY ZONES BY CENSUS TRACT

New Jersey Opportunity Zone Map

Atlantic County:

  • Atlantic City
  • Egg Harbor City
  • Egg Harbor Twp
  • Pleasantville
  • Somers Point

Bergen County:

  • Cliffside Park
  • Englewood
  • Fairview
  • Garfield
  • Hackensack
  • Lodi
  • South Hackensack
  • Teterboro

Burlington County:

  • Burlington City
  • Palmyra
  • Pemberton Twp
  • Riverside
  • Willingboro

Camden County:

  • Camden City
  • Lindenwold
  • Pennsauken
  • Pine Hill

Cape May County:

  • Wildwood
  • West Wildwood
  • Lower Twp

Cumberland County:

  • Bridgeton
  • Vineland
  • Millville

Essex County:

  • East Orange
  • Irvington
  • Newark
  • Orange

Gloucester County:

  • Deptford
  • Glassboro
  • Woodbury

Hudson County:

  • Bayonne
  • Kearny
  • Jersey City
  • North Bergen
  • Union City
  • West New York

Hunterdon County:

  • Flemington

Mercer County:

  • Trenton
  • Hamilton

Middlesex County:

  • Carteret
  • Jamesburg
  • New Brunswick
  • Perth Amboy
  • South River

Monmouth County:

  • Asbury Park
  • Freehold Borough
  • Long Branch
  • Neptune City
  • Neptune Twp
  • Red Bank

Morris County:

  • Dover
  • Wharton Borough

Ocean County:

  • Berkeley
  • Lakewood
  • Manchester

Passaic County:

  • Clifton
  • Passaic City
  • Paterson
  • Prospect Park

Salem County:

  • Carney’s Point
  • Salem City

Somerset County:

  • Bound Brook
  • North Plainfield

Sussex County:

  • Sussex Borough

Union County:

  • Elizabeth
  • Hillside
  • Plainfield
  • Linden
  • Rahway

Warren County:

  • Phillipsburg

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