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December 2007
New Tax Laws Benefit Rural Renewal Counties
Koochiching County's status as a Rural Renewal County offers expanded tax advantages to employers.
There is an estimated $11 billion in tax incentives available to businesses that hire local residents, upgrade equipment needs, and build or rehabilitate commercial property in Renewal Communities and Empowerment Zones. These incentives include wage credits, increased deductions, accelerated depreciation, low-interest loans through facility bonds, tax savings on capital gains, and other incentives.
The new legislation authorizes eligible employers to claim up to $2,400 in work opportunity tax credits (WOTCs) by employing 18-39 year-old residents of Renewal Communities, Empowerment Zones, and rural renewal counties. Prior to May 25, 2007, eligible employers who wanted to claim these credits by hiring high-risk youth needed to hire 18-24 year-old residents of Renewal Communities and Empowerment Zones.
The law expands the maximum age to 39 and also added residents of rural renewal counties to the list of eligible employees for this credit. It also changed the name of this targeted group from "high-risk youth" to "designated community residents." The law also extends the WOTC to include individuals who begin work for the employer by August 31, 2011.
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