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Renewal Community Tax Credit
Full Scale Provider of Tax Credit Services
If your business is located in one
of 40 distressed communities named by the government in the 2000
Community Renewal Tax Relief Act, you could share in an estimated
$17 billion in tax incentives for stimulating job growth, promoting
economic development and creating affordable housing. Ask AmCheck
for more information.
Tax Credits
- If you hire and retain residents of a Renewal Community (RC),
you might qualify for wage credits toward your federal tax liability.
Businesses operating in a Renewal Community can receive a credit
of up to $1,500 for each new or existing employee who lives and
works in the RC.
- When you hire an employee from a group with traditionally high
unemployment rates or other special employment needs (such as
youth who live in the RC), your business could qualify for up
to $2,400 in a credit against their Federal tax liability.
Tax Deductions
- Under the Commercial Revitalization Deductions, a business operating
in a state with one or more RCs can deduct up to $5 million in
the year a new commercial or industrial building is placed in
service, or deduct the full amount of eligible expenditures pro
rata over 10 years.
- Section 179 Deductions under the tax code allow a qualified
RC business to expense up to $35,000 of additional qualified property
such as equipment and machinery acquired each year during the
period of the RC designation, 2002 through 2009.
- Environmental Cleanup Cost Deductions allow businesses to deduct
qualified cleanup costs in Brownfields.
Capital Gains Exclusions
If your business operates in an RC and acquires a property or an interest
in a property there during the period of RC designation and holds
it for at least 5 years, you might be eligible for a zero percent
capital gains rate.
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