TRENTON, NJ — November 7, 2026 — New Jersey has received federal approval for 130 Opportunity Zones across the state, opening the door to new private investment, housing development, business expansion, and potential job creation in communities seeking economic revitalization.
Governor Mikie Sherrill announced the approval on Friday, November 6, describing the program as an important opportunity to direct investment toward historically overlooked communities.
The newly approved areas include neighborhoods in approximately 60 municipalities, including Hackensack, Garfield, Fairview, Jersey City, Newark, Paterson, Trenton, and Atlantic City.
The designations will become effective on January 1, 2027, beginning a new ten-year cycle of federal tax incentives intended to encourage long-term investment.
What Are Opportunity Zones?
Opportunity Zones are designated areas where private investors can receive federal tax benefits for investing in eligible businesses, real estate, and development projects.
The program was originally established under the federal Tax Cuts and Jobs Act of 2017 and was made permanent in 2025.
Its primary purpose is to encourage private capital to flow into economically disadvantaged communities that may have difficulty attracting conventional investment.
Eligible projects can include new residential buildings, commercial developments, business facilities, and the redevelopment of vacant or underused properties.
Investments generally must be made through Qualified Opportunity Funds and comply with federal tax regulations.
The program does not provide automatic government grants to residents or businesses. Instead, it creates financial incentives intended to encourage private investors to support local development.
Sherrill Highlights Housing and Economic Growth
Governor Sherrill said the federal approval creates opportunities for communities across New Jersey to attract investment and expand economic activity.
In her November 6 statement, she emphasized the importance of transforming vacant properties into productive spaces and supporting development near transportation hubs.
The governor specifically identified Trenton, Atlantic City, and downtown areas throughout New Jersey as priorities for the program.
Her administration has made housing development, economic growth, and community revitalization central components of its development strategy.
Opportunity Zones could help municipalities attract financing for projects that increase housing availability, support local businesses, and create construction and permanent employment opportunities.
However, the number of jobs and housing units ultimately created will depend on the projects investors decide to finance.
Bergen County Communities Included
Several Bergen County municipalities are among the communities included in New Jersey’s new Opportunity Zone selections.
These include:
- Hackensack
- Garfield
- Fairview
- South Hackensack and Teterboro
Their inclusion is particularly relevant to northern New Jersey, where housing demand, commercial redevelopment, and transportation access remain important economic issues.
Hackensack has experienced substantial redevelopment activity in recent years, particularly in its downtown area.
Garfield and Fairview also have opportunities to attract investment in residential properties, local businesses, and underused commercial sites.
The new federal designations could provide additional incentives for investors considering projects in these communities.
Not every property within a selected municipality automatically qualifies. Eligibility depends on whether the property falls inside a specifically designated census tract.
Newark, Jersey City and Paterson Among Major Cities Selected
The program also includes important urban centers throughout New Jersey.
Newark and Jersey City remain major employment, transportation, and commercial centers, while Paterson continues to pursue redevelopment opportunities involving housing, business investment, and historic industrial properties.
Other communities included in the program are Bayonne, Elizabeth, Passaic, Clifton, Camden, New Brunswick, Plainfield, Morristown, and Lakewood.
The statewide selection process sought to balance economic need with opportunities for successful development.
Officials also considered access to public transportation, housing demand, available land, existing development plans, and community priorities.
New Jersey Builds on Earlier Investments
New Jersey participated in the original Opportunity Zone program launched in 2018, when 169 census tracts received federal designation.
According to the New Jersey Department of Community Affairs, preliminary federal data showed that 78% of the state’s original Opportunity Zones had received investment through 2024.
Total reported investment reached approximately $3.14 billion across designated areas, averaging $18.6 million per eligible zone.
State officials hope the next generation of Opportunity Zones will build on those investments while expanding opportunities for housing and business development.
The Sherrill administration submitted the maximum number of eligible census tracts permitted under federal law.
The nominations followed a public engagement process involving municipalities, county officials, economic development agencies, and community organizations.
More than 200 census tracts were recommended during the process, exceeding the state’s allowable number of 130.
The final selections were coordinated by the New Jersey Department of Community Affairs, New Jersey Economic Development Authority, and Department of State.
What Happens Next?
The new Opportunity Zone designations take effect January 1, 2027, and will remain in place for ten years.
During that period, investors may use eligible federal tax incentives to finance development projects within designated areas.
Municipal governments and economic development organizations are expected to work with businesses, developers, and community stakeholders to identify projects that align with local needs.
Potential benefits include additional housing, revitalized downtown properties, expanded business activity, and employment opportunities.
At the same time, community leaders will need to consider how new investment affects housing affordability, existing businesses, and long-term residents.
Federal approval establishes the opportunity for investment, but it does not guarantee that every designated neighborhood will receive funding or experience immediate economic growth.
For New Jersey, the program represents another tool to encourage long-term development and expand economic opportunities across the state.
Sources: Office of Governor Mikie Sherrill, New Jersey Department of Community Affairs, New Jersey Economic Development Authority, Real Estate NJ, U.S. Department of the Treasury.
By NJ RADAR Team