Renewal Community Tax Benefits

Wage Credit: Up to $1,500 or 15 percent of an employee's salary up to $10,000 for each employee who lives and works in the renewal community.

*Work Opportunity Credit: Up to $2,400 for employees hired from groups that have high unemployment rates or other special employment needs, including youth ages 18 to 24 who live in the renewal community. Other qualified groups include veterans, ex-felons, food stamp recipients, vocational rehabilitation referrals and summer youth.

*Welfare to Work Credit: Up to $3,500 for the first year and $5000 for the second year for each new hire of someone on long term family assistance.

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.

Commercial Revitalization Deduction: Allows businesses that construct or rehabilitate commercial property to deduct a portion of the costs over a shorter period of time than permitted under standard depreciation rules.

Environmental Clean up Cost Deduction: Allows businesses looking for land to deduct clean up costs of hazardous substances in qualified areas.

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 the bond proceeds. The federal government pays the interest in the form of tax credits.

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.

New Markets Tax Credit: Investors in qualified projects can obtain a tax credit of 5 to 6 percent of the amount invested for each of the years the investment is held, for up to seven years of the credit period.

Low-income Housing Credit: Ten year credit for owners of newly constructed or renovated rental housing who set aside a number of units for low-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