Lake Elsinore's New 'Opportunity Zones' Come With Profit-Making Potential

LAKE ELSINORE, CA — Two tracts within Lake Elsinore received federal Opportunity Zone 2.0 Program recognition, setting the stage for future tax-deferred investment prospects, it was announced Thursday.

"This is a tremendous win for Lake Elsinore and another example of our commitment to positioning our city for long-term economic success," Councilman Steve Manos said. "We have worked hard to create an environment where businesses can thrive, investments can flourish and our residents can benefit from new jobs and opportunities. Securing these two federal designations gives us another competitive advantage."

According to city officials, under a cooperative approach that earned state endorsements, Lake Elsinore was selected for Opportunity Zone 2.0 designations that encompass a U.S. Census tract along the northern edge of Historic Main Street, including industrial properties around the Collier Road corridor, as well as a tract that extends northeast of the city into Perris.

The 2.0 program was implemented by the U.S. Treasury Department to stimulate investments in localities by providing tax advantages.

City officials said the program features qualifying federal capital gains tax deferrals, capital gains reductions for investments that run at least five years and "exclusion" of some qualifying income from taxes when investments continue 10 years or more.

"These two designations are more than tax incentives," city Economic Development Director Gina Gonzalez said. "They represent an invitation to invest in the future of Lake Elsinore. We now have two additional tools to attract private capital, advance development opportunities and connect investors with projects that can generate lasting economic benefits for our community."

The zones will be in effect from Jan. 1, 2027, to Dec. 31, 2036.

"The designations also support the city's broader economic development priorities outlined in its Dream Extreme 2040 Plan, including commercial development, business expansion, employment-generating industries, redevelopment of underutilized properties, action sports manufacturing, Historic Main Street revitalization and new entrepreneurial ventures," according to the municipality.

Business owners and entrepreneurs who want to know more about how to avail themselves of the zones' benefits were encouraged to contact the Economic Development Department.

``With our strategic location along Interstate 15, growing population, business-friendly approach and now two federally designated Opportunity Zones, we are sending a clear message to the investment community: Lake Elsinore is ready for your next investment," Gonzalez said.

More information is available at DreamLE.org.