The federal empowerment zone tax credit creates numerous potential advantages for businesses and communities:
✓ Nurture the local economy: Create job opportunities for empowerment zone residents, and increase local business traffic.
✓ Receive a tax credit: Qualify for up to $3,000 in tax credits per eligible employee.
✓ Leverage additional opportunities: Become eligible for other tax incentives and low-cost loans after factoring in the EZEC.
The Empowerment Zone Employment Credit (EZEC) is a federal initiative that incentivizes business owners to operate in and hire residents of neighborhoods that the government hopes to stimulate. Businesses within an empowerment zone are eligible for tax credits when they employ residents as full-time or part-time employees.
The EZEC’s benefits can be substantial. Each qualifying employee can earn the business up to $3,000 annually or 20% of the first $15,000 any qualifying employee receives. However, the EZEC is only available until December 31, 2025 — barring the possibility of receiving an extension during the year.
Federal Empowerment Zone Employment Credit
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Polston Tax Resolution & Accounting can evaluate your business’s EZEC eligibility and help you apply before its expiration.
Certified Empowerment Zones
An empowerment zone is an area that the federal government has determined would benefit from an initiative that incentivizes businesses to hire local employees. Empowerment zones can be urban or rural neighborhoods. Empowerment zones exist in many regions, states, counties and cities, including some near the Polston Tax Oklahoma City branch.
EZEC Eligibility Criteria
Your business could be eligible for the EZEC if it meets these criteria:
✓ Local business presence: The business operates in an official empowerment zone.
✓ Local employee residence: The employee or employees must live in the empowerment zone.
✓ Sufficient employee tenure: The employee must have spent at least 90 days with the company during the filing year. There are some exceptions to this for employees terminated due to misconduct or who become disabled before the 90th day, and you may still be eligible even if the employees don’t meet the 90-day mark.
Why Trust Polston Tax for EZEC Support?
Polston Tax is a trusted business accounting and tax law services provider for companies interested in claiming the EZEC. Our firm features numerous experienced tax attorneys, accountants and certified public accountants (CPAs). These professionals are highly knowledgeable in their fields, allowing them to accurately apply the EZEC to your business’s unique circumstances.
In addition to our EZEC knowledge and experience, you can trust us because this type of credit corresponds naturally with our service model. Polston Tax is committed to positively impacting the communities we serve. Our Oklahoma branch overlaps with empowerment zones — together, we can contribute to helping the community thrive.
