Feb. 15, 2020 12:20p
(WGTD)---These are exciting times for a handful of people at Racine City Hall who are directly involved in economic development.
They’re taking the lead in building a new tool that’s designed to help finance development projects in the state’s 120 economic development zones spread across 44 counties.
Under federal law, taxpayers who owe capital gains taxes may defer payment on those taxes and enjoy other tax breaks by investing in municipal projects located within those zones.
Late last year, Racine Mayor Cory Mason announced the creation of the Badger State Opportunity Fund. Contributions to the fund will be pooled to help finance statewide projects. Kenosha and Racine have three zones apiece.
Racine’s Chief Innovation Officer, William Martin, is doing much of the legwork.
Appearing on a recent edition of WGTD’s Morning Show, Martin said investment dollars have been leaving the state because of a lack of a coordinated effort to take full advantage of the authorizing legislation. He cited the case of one Wisconsin resident who had over $1 million to invest then wound up taking the money to the east coast because Wisconsin lacked a fund.
Work continues in reaching out to various municipalities which could benefit by participating in the Badger State Opportunity Fund. After a portfolio of projects is lined up, then the focus will shift to attracting potential investors.
The state Assembly is expected to vote soon on a measure that would further enhance the value of the Fund by creating a state-level program that mirrors federal Opportunity Zone legislation.
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