Dec. 12, 2019 4:20p
(WGTD)---A new development tool has been launched in Racine that could benefit municipalities across the state.
Unveiled in Racine Mayor Cory Mason’s office Thursday was the first statewide diversified opportunity fund that allows investors to take advantage of a new federal law on capital gains taxes. It allows high-flyers to defer those taxes by investing in projects contained in the state’s 120 opportunity zones.
Mayor Cory Mason said the fund hopes to raise between $15 and $25 million. "It's a powerful tool that cities have available to them to encourage investment in economically distressed areas, " Mason said. "There are 120 of them in the State of Wisconsin. The City of Racine has three of them," he said.
Racine is the first community in the state to take the time to navigate the complex law on capital gains deferrals and come up with a program.
Officials believe opening up the plan to investment zones around the state will make the program stronger.