RENEWAL COMMUNITY
EMPLOYMENT CREDIT
| HUD
continues to expand the boundaries of the Renewal Communities.
Although plans are on the table to continue to expand several
other Renewal Communities, we are currently working with
businesses and local officials in the ones who have, to insure
that the businesses and local officials in the ones who have, to
insure that the businesses impacted by these changes are
properly notified. If you wish to find out if your business is
one of those affected by this recent change, please call us. |
WHAT IS THE
CREDIT?
The Federal Government recently approved a very generous Tax Credit called
the Renewal Community Employment Credit. It is available only to companies
that are located in a federally designated Renewal Community (as
determined by H.U.D.) and who hire a portion of their workforce from a
designated Renewal Community. This Tax Credit becomes effective Jan 1,
2002 for the 40 Renewal Communities around the country and expires on
December 31, 2009.
WHY DID THE
GOVERNMENT CREATE THESE CREDITS?
The Federal Government uses this Tax Credit to encourage employers to
locate their business in a Renewal Communities and hire residents of the
Renewal Community. These programs are intended to help improve the
community and it's resident by bringing in commerce and an increasing the
tax base.
HOW MUCH OF A
CREDIT IS IT?
Up to $1,500 per community resident, per year (15% of the first $10,000 of
income.) Qualifying employees must work a minimum of 90 days.
WHERE ARE THESE ZONES?
There are 40 Renewal Communities 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
for all
employees on staff as of Jan 1, 2002.
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 RC 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.
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