|
Tax Incentives Available to Create Affordable Housing
Special tax incentives designed to create affordable housing, promote economic development and stimulate job growth are available to small businesses located in economically distressed areas under the Community Renewal Act of 2000, according to the Internal Revenue Service.
IRS Publication 954, Tax Incentives for Distressed Communities, provides information about the tax incentives for businesses located in designated Empowerment Zones or Renewal Communities.
Incentives for Commercial Property, Too
For businesses that hire local residents, upgrade equipment and build or rehabilitate commercial property, substantial cash savings through tax incentives are possible, as well.
More than $19 billion in federal tax incentives is reserved exclusively for Renewal Communities, Empowerment Zones and the Gulf Opportunity Zone. These incentives include wage credits, increased deductions, accelerated depreciation, low-interest loans through facility bonds and tax savings on capital gains.
In most cases, businesses must be located in designated Empowerment Zones or Renewal Communities to qualify for the incentives. However, some incentives are available to businesses regardless of location.
For more information and an online locator of the designated zones, visit the Department of Housing and Urban Development Web site at www.hud.gov, or IRS Publication 954.
NAHB Members:
Click here to learn more about Empowerment Zone Tax Incentives and to download a complete list of incentives available.
Attend the Housing Credit Group Issues Forum
Mark your calendars for the Housing Credit Group Issues Forum in Seattle on Sept. 5. The forum discussion will feature ways to break down common barriers to affordable housing.
For more information on the Housing Credit Group, click here.
|
