Opportunity Zones Will Generate Economic Growth & Opportunity Redevelop NJ Communities
On March 22, 2018, New Jersey Governor Phil Murphy’s office announced that there are 75 municipalities that have been recommended by the state’s Department of Community Affairs to become Opportunity Zones.
The 75 municipalities include at least one within each of New Jersey’s counties.
In 2017, the Opportunity Zones program was passed to draw in long-term capital investments into low-income rural and urban communities. Under this federal legislation, eligible Opportunity Zones are census tracts with a poverty rate of 20% or a median family income up to 80% of the area median.
Governor Murphy will be designating up to 25% of the state’s eligible low-income census tracts as Opportunity Zones. The Opportunity Zones will generate economic growth and opportunity to redevelop New Jersey communities and increase the economy.
Opportunity Zones will provide opportunities to private investors to support investments in distressed communities by targeting certain tax incentives in these zones, with a goal of stimulating investments in these communities. Investors and taxpayers can reinvest capital gains under a structure that defers the applicable taxes.
If these investments are held for at least five years, they become eligible for specific reductions or exemptions. The U.S. Department of the Treasury will release more about the structure of the Opportunity Funds later in 2018.
Below is a list of the municipalities within each county that have been recommended to become Opportunity Zones:
- Atlantic (5): Atlantic City, Egg Harbor City, Egg Harbor Township, Pleasantville, Somers Point;
- Bergen (8): Cliffside Park, Englewood, Fairview, Garfield, Hackensack, Lodi, South Hackensack, Teterboro;
- Burlington (5): Burlington City, Palmyra, Pemberton Township, Riverside, Willingboro;
- Camden (4): Camden City, Lindenwold, Pennsauken, Pine Hill;
- Cape May (3): Wildwood, West Wildwood, Lower Township;
- Cumberland (3): Bridgeton, Vineland, Millville;
- Essex (4): East Orange, Irvington, Newark, Orange;
- Gloucester (3): Deptford, Glassboro, Woodbury;
- Hudson (6): Bayonne, Kearny, Jersey City, North Bergen, Union City, West New York;
- Hunterdon (1): Flemington;
- Mercer (2): Trenton, Hamilton;
- Middlesex (5): Carteret, Jamesburg, New Brunswick, Perth Amboy, South River;
- Monmouth (6): Asbury Park, Freehold Borough, Long Branch, Neptune City, Neptune Township, Red Bank;
- Morris (2): Dover, Wharton Borough;
- Ocean (3): Berkeley, Lakewood, Manchester;
- Passaic (4): Clifton, Passaic City, Paterson, Prospect Park;
- Salem (2): Carney’s Point, Salem City;
- Somerset (2): Bound Brook, North Plainfield;
- Sussex (1): Sussex Borough;
- Union (5): Elizabeth, Hillside, Linden, Plainfield, Rahway;
- Warren (1): Phillipsburg.