Program Overview

The Opportunity Zones program was enacted as part of the 2017 federal Tax Cuts and Jobs Act and is designed to drive long-term capital investments into low-income rural and urban communities. This federal program provides opportunities for private investors to support investments in distressed communities through participation in Qualified Opportunity Funds.

Investors can defer paying federal taxes on capital gains reinvested in Qualified Opportunity Funds that invest in low-income communities, under rules released by the U.S. Department of the Treasury. Reinvested capital gains are deferred from taxation until exit from a Qualified Opportunity Fund or December 31, 2026, whichever comes first. However gains from Qualified Opportunity Fund investments held for the long term are taxed at reduced rates, with the rate reductions increasing at the 5, 7, and 10 year marks. Any gains from Qualified Opportunity Fund investments held for at least 10 years will be permanently excluded from the capital gains tax.

How does the Opportunity Zone program work?

How many Zones were created?

How were New Jersey’s Opportunity Zones designated?

Where are New Jersey’s Opportunity Zones?

 

How does the Opportunity Zone program work?

The final rules and guidelines from the Opportunity Zone program have not yet been released by the U.S. Department of the Treasury. Comments or questions about the program rules and guidelines can be directed to CC.ITA.Section.1400@irscounsel.treas.gov

However the federal Tax Cuts and Jobs Act states that:

  • Opportunity Funds must hold at least 90 percent of their assets in Qualified Opportunity Zone stock, partnership interests, or business property.
  • To receive tax deferrals, capital gains must be reinvested in Qualified Opportunity Funds within 180 days of the date of sale or exchange producing the gains.
  • Tax deferrals last until December 31, 2026, after which the Opportunity Zone program will end absent reauthorization by Congress.

For more information, visit the U.S. Department of the Treasury’s Opportunity Zone FAQ page and rules for capital gains invested in Opportunity Zones.

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How many Zones were created?

Under the federal legislation, eligible Opportunity Zones were “low-income” census tracts with a poverty rate of 20 percent or a median family income up to 80 percent of the area median. Governor Murphy was authorized to designate up to 25 percent of the state’s eligible low-income census tracts (up to 169 tracts) as Opportunity Zones. 169 tracts were nominated on March 20, 2018 and approved by the US Department of the Treasury on April 9, 2018.

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How were New Jersey’s Opportunity Zones designated?

Governor Murphy worked directly with Senator Booker’s office, convened meetings and roundtables 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.

Designated census tracts reflect key economic indicators (e.g. income, unemployment rate, property values) that also take into consideration geographic distribution, access to transit, and the value of existing investments, including those encouraged by state programs and incentives.

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Where are New Jersey’s Opportunity Zones?

75 municipalities, representing every county in New Jersey, received at least one Opportunity Zone.

Click here for an Excel workbook containing a list of the designated OZ census tracts for New Jersey

Click here to view an interactive map of the designated OZ census tracts for New Jersey.

Click here to download a large, non-interactive map of the designated OZ census tracts for New Jersey.

Click here for an interactive map of State special designation and incentive areas. Opportunity Zone status can be viewed by clicking any point on the map once or entering an address in the “Find Location by Address” tab and clicking the “Report” tab that appears at the top left corner. The report will show all incentive and designation areas that are applicable, including Opportunity Zones in the “Economic Growth” section.

Designated Opportunity Zones map of NJ

 

Municipalities with at least one Opportunity Zone:

  • Atlantic City (Atlantic County)
  • Egg Harbor City (Atlantic County)
  • Egg Harbor Twp (Atlantic County)
  • Pleasantville (Atlantic County)
  • Somers Point (Atlantic County)
  • Cliffside Park (Bergen County)
  • Englewood (Bergen County)
  • Fairview (Bergen County)
  • Garfield (Bergen County)
  • Hackensack (Bergen County)
  • Lodi (Bergen County)
  • South Hackensack (Bergen County)
  • Teterboro (Bergen County)
  • Burlington City (Burlington County)
  • Palmyra (Burlington County)
  • Pemberton Twp (Burlington County)
  • Riverside (Burlington County)
  • Willingboro (Burlington County)
  • Camden City (Camden County)
  • Lindenwold (Camden County)
  • Pennsauken (Camden County)
  • Pine Hill (Camden County)
  • Wildwood (Cape May County)
  • West Wildwood (Cape May County)
  • Lower Twp (Cape May County)
  • Bridgeton (Cumberland County)
  • Vineland (Cumberland County)
  • Millville (Cumberland County)
  • East Orange (Essex County)
  • Irvington (Essex County)
  • Newark (Essex County)
  • Orange (Essex County)
  • Deptford (Gloucester County)
  • Glassboro (Gloucester County)
  • Woodbury (Gloucester County)
  • Bayonne (Hudson County)
  • Kearny (Hudson County)
  • Jersey City (Hudson County)
  • North Bergen (Hudson County)
  • Union City (Hudson County)
  • West New York (Hudson County)
  • Flemington (Hunterdon County)
  • Trenton (Mercer County)
  • Hamilton (Mercer County)
  • Carteret (Middlesex County)
  • Jamesburg (Middlesex County)
  • New Brunswick (Middlesex County)
  • Perth Amboy (Middlesex County)
  • South River (Middlesex County)
  • Asbury Park (Monmouth County)
  • Freehold Borough (Monmouth County)
  • Long Branch (Monmouth County)
  • Neptune City (Monmouth County)
  • Neptune Twp (Monmouth County)
  • Red Bank (Monmouth County)
  • Dover (Morris County)
  • Wharton Borough (Morris County)
  • Berkeley (Ocean County)
  • Lakewood (Ocean County)
  • Manchester (Ocean County)
  • Clifton (Passaic County)
  • Passaic City (Passaic County)
  • Paterson (Passaic County)
  • Prospect Park (Passaic County)
  • Carney’s Point (Salem County)
  • Salem City (Salem County)
  • Bound Brook (Somerset County)
  • North Plainfield (Somerset County)
  • Sussex Borough (Sussex County)
  • Elizabeth (Union County)
  • Hillside (Union County)
  • Plainfield (Union County)
  • Linden (Union County)
  • Rahway (Union County)
  • Phillipsburg (Warren County)