Portage has designated Opportunity Zone
Portage has designated Opportunity Zone
In 2018, the U.S. Treasury Department designated 120 Opportunity Zones across 44 counties in rural, urban, and tribal areas of Wisconsin.
Wisconsin’s designation includes a qualified census tract in Portage that is bounded by U.S. 51 and STH 16 to the east, and the boundaries of the City Limits to the North, West and South. The area includes TID #4 (Portage Industrial Park), TID #5, and part of TID #6 in Downtown Portage.
Opportunity Zone Program Quick Facts:
The Opportunity Zones Program created by the federal Tax Cuts and Jobs Act of 2017 is designed to drive long-term investment to income qualified area by providing investors with certain tax incentives when they re-invest unrealized capital gains in designated Opportunity Zones.
Opportunity Zones are census tracts, recommended by governors and officially designated by the U.S Treasury Department, that are eligible to receive private investments through Opportunity Funds. Opportunity Zone designations last for 10 years.
Opportunity Funds are a new class of investment instruments certified and authorized by the U.S. Treasury Department to direct private investment into Opportunity Zones.
Opportunity Funds are authorized to invest in Opportunity Zone Property, which is defined as stock in a domestic company, interest in a domestic partnership, or tangible business property.
The Opportunity Zones Program provides tax incentives for investors to re-invest unrealized capital gains into Opportunity Funds. The incentives include:
1) Temporary deferral of capital gains that are re-invested into Opportunity Funds;
2) Investors can also reduce taxes owed on rolled-over capital gains (by 10% – 15%) if they hold their Opportunity Fund investment for at least five years; and
3) Capital gains on Opportunity Fund investments are excluded from taxable income if investments are held for at least 10 years.
It’s anticipated the Opportunity Zones Program will be fully implemented by the fourth quarter of 2018 or the first quarter of 2019.
Source: Wisconsin Economic Development Association
Opportunity Zone Map of Portage
Opportunity Zones_Baker Tilly_10 30 18 (1)
For information on investing in Portage’s Opportunity Zone contact:
Steven Sobiek
City of Portage
Business Development and Planning Dept
608.745.0038
steven.sobiek@portagewi.gov