Chamber Supports EZ TAX Breaks
One of the Chambers continuing goals is to make New Haven a better place to do business. The Chamber is pleased to help promote a number of business tax incentives offered through the Empowerment Zone.
New Haven firms are eligible for more than $2 billion in federal tax credits, deductions and incentives. Formed in 1999, Empower New Haven administers the New Haven Empowerment Zone (EZ) which includes parts of six neighborhoods and six commercial and industrial sites throughout the city, including downtown and Long Wharf. Federal tax incentives available through Empower New Haven can save New Haven businesses thousands of dollars: Wage Credits: EZ businesses can save up to $3,000 per employee with the Empowerment Zone Wage Credit.
For example, a downtown restaurant that employs 6 EZ residents is eligible to save up to $18,000 in federal taxes. Other wage credits are not specific to EZ businesses, such as the Work Opportunity Tax Credit and the Welfare to Work Tax Credit. Deductions: EZ businesses can save thousands of dollars with two tax deductions.
Increased Section 179 Expensing allows businesses to claim an additional $35,000 for property and depreciable machinery and equipment purchases.
The Environmental Cleanup Cost Deduction allows businesses to deduct certain cleanup costs of hazardous substances in brownfields. These sites do not have to be located in the Empowerment Zone. Bond Financing: EZ businesses can access Tax-Exempt Facility Bonds to finance property and equipment and to develop business sites in the Empowerment Zone areas.
Other Incentives: Other valuable benefits include Capital Gains incentives, the New Markets Tax Credit, and the Low-Income Housing Tax Credit. For more information on these tax incentives and other business resources, contact Empower New Haven at (203) 776-2777. You may also consult IRS publication 954 or your tax professional.
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