BAYONNE, N.J. — Two sections of Bayonne have been approved for the federal Opportunity Zone program, which offers investors tax breaks for putting money into economically struggling areas, according to the New Jersey Senate Democrats.
Gov. Mikie Sherrill submitted the city’s census tracts 109 and 110 for consideration, and the U.S. Department of the Treasury and the Internal Revenue Service approved them Thursday, the Senate Democrats said.
State Sen. Angela V. McKnight, D-Hudson, welcomed the designation.
“Thank you to Governor Sherrill and her administration for recognizing the potential for continued investment and economic growth in Bayonne,” McKnight said. “The Opportunity Zone program will help us bring new businesses, housing, and community spaces to these areas, strengthening our neighborhoods and creating more opportunities for residents. Bayonne has been on the rise, and these resources will continue to support the city’s transformation.”
Census Tract 109 sits between Prospect Avenue and Broadway, bounded on the north by East 25th Street. Most of its southern edge is East 16th Street, though it also includes a small area on the city’s East Side between East 11th and East 16th streets around the light rail line.
Census Tract 110 runs between Avenue C and Broadway, from West 16th Street north to West 25th Street.
Created in 2017, the federal program is meant to draw investment to undercapitalized communities. Investors can defer taxes on earlier capital gains by reinvesting them in Opportunity Funds, and those who hold the investments long enough can see the taxes on the original gains reduced. Investments held at least 10 years can be exempt from federal capital gains taxes on any additional profits.
The incentives can be used to develop commercial and industrial real estate, housing and infrastructure, or to invest in existing businesses.
A new 10-year Opportunity Zone cycle begins Jan. 1, 2027.
This report is based on a press release from the New Jersey Senate Democrats.
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