Opportunity Zone in Benton County Provides Opportunities for Investors!

In December of 2017, Congress passed the Tax Cuts and Jobs Act (Jobs Act or Act) and Opportunity Zones were created. Opportunity Zones are designated areas around the United States where investors can receive tax incentives for new investments. The goal of creating these Opportunity Zones is to help increase economic development and growth within these areas. The U.S. Government worked closely with mayors across the country to decide which areas should be designated as Opportunity Zones. These zones span across all 50 states, the District of Columbia, and five U.S. territories. In short, Opportunity Zones were created to help stimulate economic growth and job creation in designated areas, while simultaneously giving investors in these areas unprecedented tax breaks for their investment!

Benton County, located in central Minnesota, is one such area that has been designated as an Opportunity Zone.

Located in the city of St. Cloud, MN, Benton County’s Opportunity Zone consists of downtown St. Cloud, the St. Cloud Airport Business Park, and the St. Cloud Industrial Park. The state of Minnesota and Benton County are looking for investors to help develop this area and revitalize the economy.

Benton County urges investors looking to invest their capital gain in something to consider investing in their Opportunity Zone and in return, they will receive rewarding tax breaks. Businesses looking for a great location to locate or expand their business should also consider developing their business in Benton County’s Opportunity Zone.

So, what is so different about the tax benefits of investing in Opportunity Zones versus investing in stocks or other real estate properties? Unlike other investment opportunities provided to investors, corporations, or trusts, when you invest in Opportunity Zones instead of paying capital gains tax investors can defer, reduce, or eliminate paying capital gains tax. According to the new tax law investors who invest in an Opportunity Zone for up to five years before realizing the capital gain are eligible for a 10% reduction on the tax invested. If one invests in an Opportunity Zone for seven years, they are eligible for a 15% reduction. And if one invests in an Opportunity Zone for ten years or more the tax on capital gains realized drops to zero! Meaning no tax would need to be paid for capital gains realized in the investment. The longer one invests in these zones, the further reduced the taxes become when realizing a capital gain.

On top of tax incentives to invest, Benton County’s Opportunity Zone is also in the perfect locale for those looking to relocate there. Not only is it part of the bustling city of St. Cloud, but it is also just a mere 60 miles to the Twin Cities. The zone is located near Highway 10 and Highway 23, which makes traveling to any part of the state easy.

The workforce within this area is also growing, with many opportunities for employment or expansion for business owners. With a total population of nearly 70,000 people and only approximately 33,500 of those currently in the workforce, there are skilled workers available to fill key positions. With additional investment, St. Cloud’s Opportunity Zone shows a promising future for new businesses and job creation efforts.

There are currently 2,912 total businesses operating in the St. Cloud area. Construction, Manufacturing, and Wholesale Trade are the top three industries currently thriving in Benton County, with much room for growth. Investors looking for a unique investment with major tax break incentives are encouraged to look into investing in Benton County’s Opportunity Zone.

St. Cloud is a thriving and expanding Opportunity Zone that is perfect for investors and business owners alike.

If you are interested in learning more about investing in Benton County’s Opportunity Zone contact John Uphoff at bentoneconomicpartnership@gmail.com.

References

http://www.bentonpartnership.org/

https://mn.gov/deed/business/financing-business/tax-credits/opp-zones/

https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

https://www.youtube.com/watch?v=REpTi6dYtTg