U.S. Senator Cory Booker and Gov. Phil Murphy explain how the federal Opportunity Zones program can spur private investment needed to revitalize New Jersey’s low-income areas in this broadcast of Choose NJ’s Investor Symposium on the Federal Economic Opportunity Zone Program, moderated by Steve Adubato.
Watch the rebroadcast on WHYY at 5:30 p.m., on Wednesday, Aug. 29, or click here to view online.
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. There are 75 municipalities in New Jersey, representing every county, that have at least one Opportunity Zone.
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 taken 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.