Tax Advantages and Issues in Renewal Communities Posted: January 1, 2006
Communities that receive RC or EZ designation will be able to use a revitalizing business tax incentive package valued at $22 billion nationwide. HUD will designate a total of 40 rural and urban RCs. The designation period will be from January 1, 2002 to December 31, 2009.
On December 21, 2000, the Community Renewal Tax Relief Act of 2000 was signed into law. The law provides for $15 billion in tax incentives under the New Markets Tax Credit Program to help spur economic growth in new markets in urban and rural communities across the country. By making an equity investment in an eligible 'community development entity' (CDE), individual and corporate investors can receive a New Markets Tax Credit worth more than 30 percent of the amount invested over the life of the credit, in present value terms.
Click here: https://www.appal.org/rc_tax/ to read more about RC tax advantages and issues.
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