Opportunity Zone Information
Opportunity Zones were created as a provision in the federal Tax Cuts and Jobs Act of 2017. The purpose is to encourage the long-term investment of capital gains into distressed communities nationwide. Capital gains must be placed into an investment vehicle known as a “qualified opportunity fund” or QOF. A Opportunity Fund can be organized as a corporation or partnership strictly for the purpose of investing within Opportunity Zones. Funds will be self-certified per IRS guidelines. The tax provision provides three main benefits to the private investor. First, in terms of the original capital gains, the investor receives the deferral of payment of the capital gains tax until 2026. After five years 10% of the tax is deferred, and after 7 years 15% is deferred so that when ultimately due, an investor pays 85% of the tax on the original gain. Finally, concerning tax on the Opportunity Fund Investment, after ten years any gain accrued on the investment during that ten-year period is TAX FREE. Within an Opportunity Zone, other local, state and federal development incentives can be provided to create an attractive project financing. Cumberland County has a total of 5 census tracts designated as qualified Opportunity Zones in the three largest cities of Vineland, Bridgeton, and Millville.
Bridgeton’s opportunity zones offer a rare mix of investment alternatives that include retail-commercial/upper-floor living in downtown, smart food technology/processing/manufacturing partnerships, and residential development. Both zones are centrally located near City Park and the Cohanzick Zoo, two of the County’s top tourist destinations, providing easy access to these popular amenities. Unique investment possibilities characterize Bridgeton’s zones whether industrial, commercial, residential, or mixed-use.
Vineland’s two opportunity zones are centrally located in Cumberland County’s largest city. These zones provide tremendous investment opportunities for commercial, residential and mixed-use projects. Just minutes from New Jersey Route 55, Vineland has direct access to the tri-state and east coast transportation network. Vineland’s Downtown area continues to grow and is becoming a hub for the millennial generation with upstairs living opportunities, microbreweries, entertainment, and an expanding restaurant scene.
Known as the Glasstown Arts District in downtown Millville, the zone is home to a diverse culinary and cultural experience adjacent. The newly constructed Cumberland County Arts & Innovation Center provides synergies to spark innovation in the arts and sciences and entrepreneurial activities along with the business incubator, the Creative Enterprise Center. Several art galleries, shops, and the Levoy Theatre brings world-class entertainment from around the country. This zone provides opportunities for commercial, residential, and mixed-used projects centered around the arts and innovation.