State of NJ Website Offers Mapping Tools, Resources and General Information About this New Opportunity
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, the original gains reinvested in Qualified Opportunity Fund investments held for the long term are taxed at reduced rates, with taxable gains discounted by 10% at the 5-year mark and by an additional 5% discount at the 7-year mark.
- Any new gains from Qualified Opportunity Fund investments held for at least 10 years will be permanently excluded from the capital gains tax.
- U.S. Senator Cory Booker (D-NJ) was one of the authors of the Opportunity Zone legislation.
- Almost 75 municipalities in each of New Jersey’s 25 counties have designated Opportunity Zones. Click here for a list of the 75 municipalities.
- The State has developed an interactive map to find community assets, special state and local development incentive designations. Click here for the mapping tools.
- For Local Governments, the State will support communities with Opportunity Zones by utilizing the full strength and resources of the State as appropriate, to attract local partnerships that drive economic growth. Click here to learn more.
- For Opportunity Zone Residents and Stakeholders, the State will host regional community outreach seminars to engage residents and local stakeholders to ensure their participation. Click here to learn more.
- For Businesses, Developers and Investors, the State will develop guides and information resources to position New Jersey’s Zones as the most attractive options for investors, business owners and developers. Click here to learn more.
- General questions about Opportunity Zones in New Jersey can be sent by email.