The Opportunity Zone program established under The Tax Cuts and Jobs Act, signed into law in December 2017, and codified in new IRC Sections 1400Z-1 and 1400Z-2, offers tax incentives for those who reinvest capital gains and provide long-term investments (in real estate and/or operating businesses) in designated community census tracts. To date, the designations have been made in all 50 states, creating more than 8,700 designated census tracts throughout the United States, referred to as “Qualified Opportunity Zones.” In New Jersey, at least one designation was made in each of New Jersey’s 75 municipalities. Interactive maps detailing the zones in New Jersey can be found on the State of New Jersey Department of Community Affairs website, https://www.state.nj.us/dca/divisions/lps/opp_zones.

The bipartisan legislation, sponsored by Cory Booker (D-N.J.) and Tim Scott (R-S.C.) has been heralded as a program with potential to become one of the most impactful federal incentives for encouraging capital investment in low income, distressed communities ever to be enacted.

Tax Advantages