Federal Empowerment Zone Tax Credits

Federal Empowerment Zone Credits

Employers located in Federally desginated Empowerment Zones are eligible for a tax credit if they hire qualified individuals. Individuals that reside in the Empowerment Zone and performed the majority of their services in the zone qualify for the credit. The credit is 20% of the wages paid to a qualified individual up to $15,000. There are two types of Zones, urban and rural. Urban zones include:

1. Pulaski County, AR

2. Tucson, AZ

3. Fresno, CA

4. Los Angeles, CA (city and county)

5. Santa Ana, CA

6. New Haven, CT

7. Jacksonville, FL

8. Miami/Dade County, FL

9. Chicago, IL

10. Gary/Hammond/East Chicago, IN

11. Boston, MA

12. Baltimore, MD

13. Detroit, MI

14. Minneapolis, MN

15. St. Louis, MO/East St. Louis, IL

16. Cumberland County, NJ

17. New York, NY

18. Syracuse, NY

19. Yonkers, NY

20. Cincinnati, OH

21. Cleveland, OH

22. Columbus, OH

23. Oklahoma City, OK

24. Philadelphia, PA/Camden, NJ

25. Columbia/Sumter, SC

26. Knoxville, TN

27. El Paso, TX

28. San Antonio, TX

29. Norfolk/Portsmouth, VA

30. Huntington, WV/Ironton, OH

Rural zones include:

1. Desert Communities, CA (part of Riverside County)

2. Southwest Georgia United, GA (part of Crisp County and all of Dooly County)

3. Southernmost Illinois Delta, IL (parts of Alexander and Johnson Counties and all of Pulaski County)

4. Kentucky Highlands, KY (part of Wayne County and all of Clinton and Jackson Counties)

5. Aroostook County, ME (part of Aroostook County)

6. Mid-Delta, MS (parts of Bolivar, Holmes, Humphreys, Leflore, Sunflower, and Washington Counties)

7. Griggs-Steele, ND (part of Griggs County and all of Steele County)

8. Oglala Sioux Tribe, SD (parts of Jackson and Bennett Counties and all of Shannon County)

9. Middle Rio Grande FUTURO Communities, TX (parts of Dimmit, Maverick, Uvalde, and Zavala Counties)

10. Rio Grande Valley, TX (parts of Cameron, Hidalgo, Starr, and Willacy Counties)

While most industries qualify, the following are prohibited from taking the credit:

1. private or commercial golf course,

2. country club,

3. massage parlor,

4. hot tub facility,

5. suntan facility,

6. racetrack or other facility used for gambling, or

7. any store the principal business of which is the sale of alcoholic beverages for consumption off premises.