This could be your lucky day. There could be some good news waiting for you. There are tax credits available that you may not even realize. Is your business in one of the Empowerment Zones established by the government over 20+ years ago? Take a look below.
Empowerment Zone Employment Credit
What Is The Empowerment Zone Employment Credit?
The federal government provides a generous tax credit called the Empowerment Zone Employment Credit (EZEC). It is available only to companies with worksites in a federally designated Empowerment Zone who hire a portion of their workforce from one of these designated zones.
Why Did The Government Create These Credits?
These credits were created to encourage employers to locate their business in a Federal Empowerment Zone and hire/retain residents of that zone. These programs are intended to help improve the community and its residents by bringing commerce and an increased tax base to these areas.
How Much Of A Credit Is It?
The credit can amount to $3,000 per zone-resident-employee per year (20% of the first $15,000 of income). Qualifying employees must work a minimum of 90 days.
Can The People I Currently Have On Staff Qualify?
Yes. Plus, these credits are retroactive for three years.
What About People Who Would Qualify But Are No Longer Employed By My Company?
Even employees who are no longer with your company may generate a credit if they meet the residence and 90-day tenure requirements of the credit.
What R. Jeffrey & Associates, Inc. Does For You
We analyze payroll data to produce the amount of credit that can be claimed. The result is a comprehensive reporting package your business will pass on to your accountant to claim the credit.
Where Are These Empowerment Zones?
These were formed in different areas of the U.S. and include 30 urban and 10 rural Empowerment Zones. They are in the following areas:
Southwest Georgia United
Southernmost Illinois Delta
St. Louis/E. St. Louis
New York City
Oglala Sioux Tribe
Rio Grande Valley
What's The Next Step?
If your community is on this list, this could be very good news for your business. Have a live conversation with an expert at R. Jeffrey & Associates, Inc. to see if you qualify. Our goal is to have you understand how EZEC works and give you a better idea of how much it can be.
Please call us at 847-813-6622. We look forward to speaking with you.