Good City Brewing LLC co-founder Dan Katt has set up a fund for investors willing to capitalize his Century City project.
Katt is one of several developers looking at the economic Opportunity Zone program as a way to help move their projects forward.
“We intend to take advantage of the program both for new business ventures and real estate development at Century City,” Katt said.
The Opportunity Zone program was a small piece of last year’s federal Tax Cuts and Jobs Act. The program offers investors two benefits. First, they can defer capital gains on a previous investment if the money is reinvested into a zone until the end of 2026. Those capital gains taxes can be reduced by as much as 15 percent.
Second, taxes on capital gains from investments in the Opportunity Zones can be avoided if the investments are held for at least 10 years.
There are more than 8,700 Opportunity Zones throughout the United States. Wisconsin has 120 Opportunity Zones, with 48 in southeastern Wisconsin and 34 in the City of Milwaukee.
Portions of the near west side and south side, particularly along West National Avenue, are included, along with parts of Walker’s Point, the Menomonee Valley and a stretch of North Water Street between East Juneau Avenue and East Brady Street.
Source: Originally published in BizTimes Milwaukee, November 12, 2018