Cincinnati Empowerment Corporation (CEC): Leaving No One Behind, Avondale, Evanston, Queensgate, Clifton Heights, Mt. Auburn, Walnut Hills, Corryville, Over-the-Rhine, West End.

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Tax Incentives

Employers can substantially slash their tax burden by employing residents of the Empowerment Zone (EZ), developing a Brownfields, or starting a qualified EZ Business.

Note the following brief descriptions do not include all details of the benefits available.

Employment Tax Incentives

EZ Wage Credit: Credit for businesses in the EZ, of up to $3,000 against Federal taxes for every employee and new hire who lives and works in the EZ.

Work Opportunity Tax Credit: Credit of up to $2,400 against Federal taxes for new hires between the ages 18-24 from the EZ. The business does not have to be in the EZ.

Welfare to Work Credit: Two-year credit against Federal taxes for businesses that hire long-term family assistance recipients. Up to $3,500 the first year and $5,000 the second year, for each new hire. Business does not have to be in the EZ.

Business Location Tax Incentives

Increased Section 179 Deduction: For businesses qualifying as an Empowerment Zone Business, allows substantial additional deductions on depreciable property such as equipment and machinery. (Up to $35,000 for property acquired after December 31, 2001)

Brownfields: Businesses can deduct the cost of hazardous material cleanup in the tax year when the cost was incurred.

No capital gains on sale of EZ assets: Capital gain on EZ assets held more than one year is not recognized, as long as replacement EZ assets are acquired within 60 days.

Partial exclusion of gain on sale of EZ stock: Sixty percent of the gain on sale of a small business stock of a C corporation, held for at least five years, is excluded.

Financing

Enterprise Zone Facility Bonds: State and local governments can issue low cost, low interest rate tax-exempt bonds to finance qualified Zone property. $130 million is available in the EZ. At least 35% of the businesses employees must be EZ residents.

›	Tax Incentive Guide
›	Pub# 954
›	Form# 8844
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