Measuring our value by the tax dollars we save.

Hromiko & Associates, LLC

W.H. Bartlett "Ascent to the Capitol"

The federal government has designated approximately 180 Renewal Communities, Empowerment Zones, and Enterprise Communities throughout the United States. Renewal Communities and urban Empowerment Zones and Enterprise Communities are under the purview of the U.S. Department of Housing and Urban Development (HUD).  Rural Empowerment Zones and Enterprise Communities are overseen by the U.S. Department of Agriculture—Office of Community Development (USDA-OCD).

These programs provide welcome tax relief to economically distressed communities throughout the nation.

 

Helpful and Informative Links

Rural Empowerment Zone and Enterprise Communities

Tour Zones by State

US Department of Housing & Urban Development, Community Renewal Initiative

This PDF is large (868 KB), download time may be lengthy: Empowerment Zone and Enterprise Community Tax Incentives: A Guide for Businesses

 
California Tax Solutions (SM) with the image of the state capital dome is a registered service mark of Hromiko & Associates, LLC

Some of the significant tax incentives associated with federal zones:

· Empowerment Zone Employment Credit
Up to $3,000 annually in credit against federal taxes per eligible employee during the life of the zone.

· Renewal Community Employment Credit
Up to $1,500 annually in credit against federal taxes per eligible employee during the life of the Renewal Community.

· Increased Section 179 Deduction
Eligible businesses may claim an additional $35,000 in Section 179 deduction per year.

· Commercial Revitalization Deduction
Businesses that construct or rehabilitate commercial property in Renewal Communities can accelerate the deduction of costs of acquisition and rehabilitation.

· Enterprise Zone Facility Bonds
State or local governments can issue Enterprise Zone Facility Bonds (a type of exempt facility tax-exempt bond) to make loans to an Enterprise Zone Business to finance Qualified Zone Property.

· Zero Percent Capital Gains Rate for Renewal Community and DC Zone Assets
Businesses  holding qualified zone assets for at least five years pay zero capital gains tax upon sale of the asset.

· Nonrecognition of Gain on Sale of Empowerment Zone Assets
Taxpayer can postpone gain on sale  of certain stock, partnership interests, or business property of an Enterprise Zone Business if replacement property is purchased within 60 days.

· Partial Exclusion of Gain from Sale of Empowerment Zone Stock
Taxpayer can exclude 60 percent of gain realized on the sale of stock in qualified  business located in an Empowerment Zone.

We invite you to contact us:

Hromiko & Associates, LLC

Po Box 60732

Sacramento, CA 95821

 

Phone: (916) 284-8001

Fax: (916) 290-0345

E-mail: inquire@hromiko.com

Copyright 2006 by

Hromiko & Associates, LLC

Updated 10-26-2006