WHAT IS THE CREDIT?
The Federal Government provides a very generous tax credit called the Empowerment Zone Employment Credit.  It is available only to companies that are located in a federally designated Empowerment Zone (as determined by H.U.D.) and who hire a portion of their workforce from a designated Empowerment Zone.  This Tax Credit was enacted into law by Congress and will remain in effect through the year 2009. 

WHY DID THE GOVERNMENT CREATE THESE CREDITS?
The Federal Government uses this Tax Credit to encourage employers to locate their business in a Federal Empowerment Zone and hire residents of the zone.  These programs are intended to help improve the community and it’s resident by bringing commerce and an increased tax base to previously impoverished areas.  

HOW MUCH OF A CREDIT IS IT?
Up to $3,000 per zone resident, per year (20% of the first $15,000 of income.)  Qualifying employees must work a minimum of 90 days.

WHERE ARE THESE ZONES?
There are 30 Empowerment Zones in the US.  They are located in the following cities:

WILL THE PEOPLE I ALREADY HAVE ON STAFF QUALIFY?
The great news about these credits is that they are retroactive.  You may claim the credits for all current year employees.  You may go back three previous tax years for Round I Empowerment Zones (including Atlanta). 

WHAT ABOUT PEOPLE WHO WOULD QUALIFY BUT ARE NO LONGER HERE?
Even employees who are no longer with your company may generate a credit for you as long as they meet the residence and 90-day tenure requirements of the credit.

HOW DOES OUR COMPANY USE THE CREDITS?
Generally, an employer can use income tax credits as they choose, subject to IRS guidelines on the use of income tax credits.  Refer to IRS Form 8844 and the General Instructions on how to claim your credit.

WHAT R. JEFFREY & ASSOCIATES, INC. DOES FOR YOU
We merge your payroll information into a highly sophisticated program that calculates the exact amount of your credit.  A complete statement by each location is provided for you.  Every qualifying employee within each location is shown as part of our comprehensive reporting package.

HOW SOON CAN YOU GET YOUR PRIOR YEAR’S CREDIT?
On average the process of calculating the credit and producing reports takes us less than a month.  The timing of your refund check from the IRS will vary by the time of year and the complexity of re-filing your returns.  We recommend you speak with your tax advisor for answers specific to your situation. 

WHAT DO I DO NOW?
You can begin the process immediately with a call to Jeff Newcorn, President and Founder of R. Jeffrey & Associates.  He can determine if you are qualified for the credit and can provide you with preliminary estimates of the EZEC credit your company will earn.

Our direct line is 847-253-7300 or try us toll-free at 866-753-3379.  Please ask for Jeff Newcorn, President of R. Jeffrey & Associates.