U.S. Empowerment Zone Credits
The Empowerment Zone Employment Credit (EZ Wage Credit) and Renewal Community Employment Credit (RC Wage Credit) give employers an incentive to retain or hire individuals who both live and work in an Empowerment Zone (EZ) or a Renewal Community (RC), respectively. (Individuals who work in the DC Enterprise Zone may live anywhere in the District of Columbia.)
Across the country, there approximately 80 federal Empowerment Zones and Renewal Communities offering a variety of special tax benefits to businesses.
How much? Employers can claim the wage credit if they pay or incur “qualified zone wages” to a qualified employee. The credit can be as much as $3,000 per qualified employee per year for the EZ Wage Credit and up to $1,500 for the RC Wage Credit.
Find out more. Find out if your business operates within one or more federal Empowerment Zone or Renewal Community. Please give us a call toll free at (800) 655-5281 or Click Here to send a request for more information. We will gladly answer your questions and explain how to make it work for you.
Mortgage Lender Saves Hundreds of Thousands
We recently completed a retroactive tax credit analysis under the California enterprise zone program for this lender in southern Callifornia. With a pool of 30 employees to evaluate, we secured tax credits of $170,000 from 2008 and 2009 and anticipate more than $100,000 in additional tax credit to be generated by wages paid to qualifying employees in upcoming years.
Small Machine Shop Receives Hefty Bonus
A small two-man machine shop was experiencing difficult times in Marysville, California. They didn't know they were located within a California enterprise zone. With a little help from Zone Centrix, this sole propriety secured a $19,000 tax refund that was completely unexpected -- taxes he had overpaid during the past few years while unaware that his businesses was already qualified.
Quick Serve Chain
With 650 to 700 new hires annually, this highly respected restaurant group generated more than $630,000 in CA state tax credits for 2008. On the federal side, it also generated another $165,000 in combined Work Opportunity Tax Credits (WOTC) and Empowerment Zone Wage credits.
We have been very happy with the results of Zone Centrix' tax credit services. One year, they documented federal employment-based tax credits for us averaging almost $170 per new employee!
