(KNSI) – Investors who put money into projects in east St. Cloud and far northwest St. Cloud could soon get a significant break on their taxes.
The U.S. Department of the Treasury announced this week it has approved all 73 Minnesota census tracts Governor Tim Walz nominated as Opportunity Zones. The designations take effect January 1st, 2027, and include all of east St. Cloud and the far northwest part of the city.
Opportunity Zones are a federal program designed to steer private money into lower-income neighborhoods. When people sell stocks, property or other investments for a profit, they normally owe capital gains taxes. If they reinvest that profit in a special fund that builds housing, develops real estate or backs businesses inside an Opportunity Zone, they can delay those taxes, lower them, or in some cases avoid them altogether. Investors who leave their money in the fund for at least 10 years pay no capital gains tax on what that investment earns…