Renewal community
Encyclopedia
Renewal Communities and Empowerment Zones (EZs) are distressed urban and rural communities in the United States
where qualifying businesses are eligible for billions of dollars in tax incentives.
The Departments of Housing and Urban Development
(HUD) and Agriculture
(USDA) have designated RCs and EZs in three competitions since 1994. Currently, there are 40 HUD RCs, 28 of which are in urban areas and 12 in rural communities. There are 30 HUD EZs, all of which are in urban areas. There are 10 USDA EZs in rural communities only. A couple of RCs have as few as approximately 100 businesses, while several RCs and EZs have more than 5,000 businesses. No RC or EZ has a population greater than 200,000.
Qualifying businesses in RCs are eligible for employment credits (up to $1,500 yearly per RC resident employed). Qualifying RC businesses are also eligible for a 0% tax on the capital gains of assets sold, provided the business holds the asset at least five years. Businesses in RCs that build or substantially rehabilitate commercial property may also be eligible for up to $10 million in Commercial Revitalization Deductions to rapidly increase their depreciation schedules. For detailed information on all RC/EZ tax incentives, including which tax forms to file to claim the incentives, read IRS Publication 954, Tax Incentives for Distressed Communities, available on the IRS website at www.irs.gov.
The renewal community employment credit provides businesses with an incentive to hire individuals who both live and work in a renewal community. Employers can claim the credit if they pay or incur “qualified zone wages” to a “qualified zone employee”. The credit is for wages paid or incurred after 2001. The credit is 15% of the qualified wages paid or incurred during a calendar year. The amount of qualified wages you can use to figure the credit cannot be more than $10,000 for each employee for each calendar year. As a result, the credit can be as much as $1,500 (15% of $10,000) per qualified employee each year.
These areas have been designated renewal communities:
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
where qualifying businesses are eligible for billions of dollars in tax incentives.
The Departments of Housing and Urban Development
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...
(HUD) and Agriculture
United States Department of Agriculture
The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...
(USDA) have designated RCs and EZs in three competitions since 1994. Currently, there are 40 HUD RCs, 28 of which are in urban areas and 12 in rural communities. There are 30 HUD EZs, all of which are in urban areas. There are 10 USDA EZs in rural communities only. A couple of RCs have as few as approximately 100 businesses, while several RCs and EZs have more than 5,000 businesses. No RC or EZ has a population greater than 200,000.
Qualifying businesses in RCs are eligible for employment credits (up to $1,500 yearly per RC resident employed). Qualifying RC businesses are also eligible for a 0% tax on the capital gains of assets sold, provided the business holds the asset at least five years. Businesses in RCs that build or substantially rehabilitate commercial property may also be eligible for up to $10 million in Commercial Revitalization Deductions to rapidly increase their depreciation schedules. For detailed information on all RC/EZ tax incentives, including which tax forms to file to claim the incentives, read IRS Publication 954, Tax Incentives for Distressed Communities, available on the IRS website at www.irs.gov.
The renewal community employment credit provides businesses with an incentive to hire individuals who both live and work in a renewal community. Employers can claim the credit if they pay or incur “qualified zone wages” to a “qualified zone employee”. The credit is for wages paid or incurred after 2001. The credit is 15% of the qualified wages paid or incurred during a calendar year. The amount of qualified wages you can use to figure the credit cannot be more than $10,000 for each employee for each calendar year. As a result, the credit can be as much as $1,500 (15% of $10,000) per qualified employee each year.
These areas have been designated renewal communities:
| Greene-Sumter County, Alabama | Mobile County, Alabama Mobile County, Alabama Mobile County[p] is a county of the U.S. state of Alabama. Its name is in honor of a tribe of Indians, the Maubila tribe . As of 2011, its population was 415,704. Its county seat is Mobile, Alabama... |
Southern Alabama | Los Angeles, California Los Angeles, California Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California... |
Orange Grove, California | Parlier, California Parlier, California Parlier is a city in Fresno County, California, United States. As of the 2010 census, the city had a total population of 9,494, down from 11,145 at the 2000 census. The city has one of the state's highest percentage of Latinos, a large majority of them are seasonal migrant laborers who arrive and... |
San Diego, California San Diego, California San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round... |
San Francisco, California San Francisco, California San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland... |
Atlanta, Georgia Atlanta, Georgia Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in... |
| Chicago, Illinois | Eastern Kentucky | Central Louisiana | New Orleans, Louisiana | Northern Louisiana | Ouachita Parish, Louisiana Ouachita Parish, Louisiana -National protected areas:* Black Bayou Lake National Wildlife Refuge* D'Arbonne National Wildlife Refuge -Demographics:As of the census of 2000, there were 147,250 people, 55,216 households, and 38,319 families residing in the parish. The population density was 241 people per square mile... |
Lawrence, Massachusetts Lawrence, Massachusetts Lawrence is a city in Essex County, Massachusetts, United States on the Merrimack River. According to the 2010 U.S. Census, the city had a total population of 76,377. Surrounding communities include Methuen to the north, Andover to the southwest, and North Andover to the southeast. It and Salem are... |
Lowell, Massachusetts Lowell, Massachusetts Lowell is a city in Middlesex County, Massachusetts, USA. According to the 2010 census, the city's population was 106,519. It is the fourth largest city in the state. Lowell and Cambridge are the county seats of Middlesex County... |
Detroit, Michigan Detroit, Michigan Detroit is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people. As the seat of Wayne County, the city of Detroit is the largest city in the U.S. state of Michigan and serves as a major port on the Detroit River... |
| Flint, Michigan Flint, Michigan Flint is a city in the U.S. state of Michigan and is located along the Flint River, northwest of Detroit. The U.S. Census Bureau reports the 2010 population to be placed at 102,434, making Flint the seventh largest city in Michigan. It is the county seat of Genesee County which lies in the... |
West Central Mississippi | Turtle Mountain Band of Chippewa, North Dakota | Camden, New Jersey Camden, New Jersey The city of Camden is the county seat of Camden County, New Jersey. It is located across the Delaware River from Philadelphia, Pennsylvania. As of the 2010 United States Census, the city had a total population of 77,344... |
Newark, New Jersey Newark, New Jersey Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S... |
Buffalo-Lackawanna, New York | Jamestown, New York Jamestown, New York Jamestown is a city in Chautauqua County, New York in the United States. The population was 31,146 at the 2010 census.The City of Jamestown is adjacent to Town of Ellicott and is at the southern tip of Chautauqua Lake... |
Niagara Falls, New York | Rochester, New York |
| Schenectady, New York Schenectady, New York Schenectady is a city in Schenectady County, New York, United States, of which it is the county seat. As of the 2010 census, the city had a population of 66,135... |
Hamilton, Ohio Hamilton, Ohio Hamilton is a city in Butler County, southwestern Ohio, United States. The population was 62,447 at the 2010 census. It is the county seat of Butler County. The city is part of the Cincinnati metropolitan area.... |
Youngstown, Ohio Youngstown, Ohio Youngstown is a city in the U.S. state of Ohio and the county seat of Mahoning County; it also extends into Trumbull County. The municipality is situated on the Mahoning River, approximately southeast of Cleveland and northwest of Pittsburgh, Pennsylvania... |
Philadelphia, Pennsylvania | Charleston, South Carolina | Chattanooga, Tennessee Chattanooga, Tennessee Chattanooga is the fourth-largest city in the US state of Tennessee , with a population of 169,887. It is the seat of Hamilton County... |
Memphis, Tennessee Memphis, Tennessee Memphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County. The city is located on the 4th Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers.... |
Corpus Christi, Texas Corpus Christi, Texas Corpus Christi is a coastal city in the South Texas region of the U.S. state of Texas. The county seat of Nueces County, it also extends into Aransas, Kleberg, and San Patricio counties. The MSA population in 2008 was 416,376. The population was 305,215 at the 2010 census making it the... |
El Paso County, Texas |
| Burlington, Vermont Burlington, Vermont Burlington is the largest city in the U.S. state of Vermont and the shire town of Chittenden County. Burlington lies south of the U.S.-Canadian border and some south of Montreal.... |
Tacoma, Washington Tacoma, Washington Tacoma is a mid-sized urban port city and the county seat of Pierce County, Washington, United States. The city is on Washington's Puget Sound, southwest of Seattle, northeast of the state capital, Olympia, and northwest of Mount Rainier National Park. The population was 198,397, according to... |
Yakima, Washington | Milwaukee, Wisconsin Milwaukee, Wisconsin Milwaukee is the largest city in the U.S. state of Wisconsin, the 28th most populous city in the United States and 39th most populous region in the United States. It is the county seat of Milwaukee County and is located on the southwestern shore of Lake Michigan. According to 2010 census data, the... |
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Sources
- IRS Publication 954. TAX INCENTIVES FOR DISTRESSED COMMUNITIES
- US Department of Housing and Urban Development Questions and Answers on Renewal Community (RC) and Empowerment Zone (EZ) tax incentives