Empowerment Zone Mean More Money for New Haven Businesses Businesses throughout New Haven are eligible for over $2 billion in federal tax credits, deductions and incentives through the Empowerment Zone. Designated 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 New Haven and Long Wharf. There are several federal tax incentives available to save New Haven areas 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 the 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. The 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 the purchase property and equipment and to develop business sites in the Empowerment Zone and the developable sites.
• Other Incentives: Other valuable incentives 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 Tom Ficklin at 203-776-2777, tomficklin@empowernewhaven.org or  consult IRS publication 954 or your tax professional.