What are the tax incentives for investors?
The Opportunity Zone program provides federal tax incentives to encourage investors to put their capital to work in low-income neighborhoods. It provides the following;
A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.
A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.
A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).
What assets are eligible for investment?
Real estate and businesses located within the Opportunity Zones in Milwaukee are eligible for investment. View our Development Opportunities to see city real estate available, some may fall within the Opportunity Zones.