| 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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