BRIDGETON OPPORTUNITY ZONE PROGRAM

 

                                                   WELCOME TO THE CITY OF BRIDGETON OPPORTUNITY ZONES

 

 

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 rural and urban communities that are often missed or overlooked by developers and investors, but can provide solid returns while also having a significant social impact through revitalization. 

 

This federal program provides opportunities for private investors to defer paying federal taxes on capital gains reinvested in Qualified Opportunity Funds that invest in targeted communities such as the City of Bridgeton.

 

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.

 

The City of Bridgeton has two (2) census tracts in the community that are qualified Opportunity Zones (see attached maps)

 

Census Tract 201 consists of the downtown Central Business District and surrounding mixed-use commercial neighborhoods. The downtown area, with its mix of merchants, downtown-upstairs living, and retail opportunities, sits along the Cohansey River next to the 350 acre Bridgeton City Park and Cohanzick Zoo and serves as the heart of the community.

 

Census Tract 205, just south of downtown, includes the Florida Ave Food Business Park which features the Rutgers Food Innovation Center and the Food Specialization Center (under construction). The City of Bridgeton is also working with the New Jersey Economic Development Authority and Rutgers University to complete the planning for a Smart Food Technology Center which will create a food industry cluster unique to the region. This Opportunity Zone also contains the Phoenix Redevelopment Area and Port District Redevelopment Area.

 

Because Bridgeton’s Opportunity Zones include a number of designated redevelopment areas as defined under New Jersey Municipal Land Use Law, this allows for the granting of Long Term Tax Exemptions (LTTE) and the use of other redevelopment tools and provisions to further expedite and support projects and investments in Bridgeton’s Opportunity Zones.

 

Taken together, the deferral of federal taxes on capital gains reinvested in Qualified Opportunity Funds in Bridgeton’s Zones combined with Long Term Tax Exemptions make Bridgeton’s Opportunity Zones a smart investment. 

 

 

 

 

Opportunity Zones Frequently Asked Questions

 https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

 

 

IRS Rules for capital gains invested in opportunity zones

http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1400Z-2&num=0&edition=prelim

 

 

IRS Proposed Rules for Investing in Qualified Opportunity Funds

https://www.irs.gov/pub/irs-drop/reg-115420-18.pdf

 

 

Guidance on the “original use” requirement for land purchased after 2017

https://www.irs.gov/pub/irs-drop/rr-18-29.pdf

 

 

For more Information on Bridgeton’s Opportunity Zones, please contact:

 

Kevin C. Rabago, Sr., Director

City of Bridgeton

Office of Development & Planning

(856) 451- 3407 Ext 1

Email: rabagok@cityofbridgeton.com