Did you know that owning a business in a high-poverty area makes you eligible to apply for the Empowerment Zone Tax Incentive program?
The Empowerment Zone Tax Incentive program or the EZ credit program is designed to provide businesses that are located in federally designated high-poverty areas or areas with high unemployment rates.
As a business, you’re always looking for ways to cut costs, increase profits, and apply for tax credits whenever you can. One such tax incentive program is the EZ tax incentive program. So, how does it work?
Well, it’s all pretty simple. Unlike other tax credit programs, EZ is straightforward and quick with its terms. The idea here is plain and simple – EZ states that when you operate a business in a federally designated high-poverty area whether it be rural or urban and employ residents of that area in your business, you qualify to claim EZ. To elaborate, the rural programs are administered by the U.S. Department of Agriculture (USDA) and the programs in urban areas are administered by the U.S. Department of Housing and Urban Development (HUD).
However, no matter what type of area your business comes under, the workings remain the same. The purpose of EZ is to support economic growth in low-income areas and create opportunities in areas with a high unemployment rate. As an incentive, EZ encourages businesses in these areas to hire workers from designated high-poverty locations and rewards them for taking social responsibility and stimulating economic growth in the area.
Now that you know what EZ is, let’s talk numbers – any businesses located in these federally designated zones with employees who are residents of the said zone are eligible to apply for EZ. As a business, you can claim 20% of the qualified employee’s wages which is capped at $3,000 per employee, annually.
Additionally, these workers don’t have to be full-time; you can still apply for EZ with part-time workers.
Claiming any kind of tax credit can be a hassle. You need to make sure that all your paperwork is in order, all your application details are correct, and so much more. At MCM, we understand that and are committed to helping you and your business claim tax incentives that you didn’t even know you qualified for!
To find out all about how you can make the most tax returns only with MCM, contact us today at: (866) 547-8277, SMS/Text (206) 858-8048, Book a Meeting https://calendly.com/mc-mctr/15minroi
