Area Development
Renewal Communities
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Wage credits: Up to $1,500 or 15% of an employee’s salary up to $10,000 for
each employee who lives and works in the Renewal Community.
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Increased Section 179 Deduction: Allows businesses to take a deduction of up
to $35,000 on equipment purchases. That lets businesses deduct all or part of
the equipment cost the year it is purchased instead of deducting the expense
over time.
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Commercial Revitalization Deduction: Allows businesses that construct or
rehabilitate commercial property to deduct a portion of the cost over a
shorter period of time than permitted under standard depreciation rules.
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*Qualified Zone Academy Bonds: State OR local governments can issue bonds at
no interest to them to finance certain public school programs IN SCHOOLS that
have at least 35 percent of students eligible for free or reduced-cost lunch
program. Private businesses must contribute money, equipment or services equal
to 10 percent of bond proceeds. The federal government pays the interest in
the form of tax credits.
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Zero Percent Capital Gains Rate: A business that holds an asset for at least
five years does not have to pay taxes on the profit of its sale.
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**New Markets Tax Credit: Investors in qualified projects can obtain a tax
credit of 5 or 6% of the amount invested for each year the investment is held,
for up to seven years of the credit period.
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*Low Income Housing Credit: Ten year credit for owners of newly constructed or
renovated rental housing who set aside a number of units for lower income
residents. The state must allocate a portion of its annual cap.
* Also available outside Renewal Communities
** Available in a limited capacity outside Renewal Communities
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