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Federal Empowerment Zone in Camden
The Camden Empowerment Zone Corporation, federally funded initiative, is one of two Empowerment Zones in the State of New Jersey. The program is administered in Camden by the Empowerment Zone Corporation, which contracts with local agencies to deliver services in the empowerment zone . By creating new partnerships between government, non-profit and for-profit entities, and with the help of community leaders, the Camden Empowerment Zone Corporation seeks to facilitate the transformation of Camden into a vital community for the 21st century.
The Empowerment Zone Corporation can be reached at (856) 365-0300.
The EZ program through public and private partnerships can arrange low cost, long term training to small medium size business; facilitate access to entrepreneurial training; coordination welfare-to-work training programs and through its contracting relationship with eight state agencies provide investor access to wide variety state programs.
Business Benefits for Locating Within the Empowerment Zone
TAX-EXEMPT BOND FINANCING: A qualifying business in the Camden Empowerment Zone can use tax-exempt bond financing known as "enterprise zone facility bonds," or EZ bonds. EZ bonds provide up to $3 million of tax-exempt financing for buildings or equipment for a business. EZ bonds can finance manufacturing facilities or a variety of commercial facilities.
EMPLOYEE TAX CREDIT: Employee wages paid in an empowerment zone may qualify for an "empowerment zone employment credit" of up to $3,000 per employee per year.
WORK OPPORTUNITY TAX CREDIT: Employers may claim a credit of 35% of qualified first-year wages paid to an employee who is a resident of an empowerment zone. Generally, an employer may take into account the first $6,000 of the employee's first-year wages, for a maximum credit of $2,100.
SEC. 179 EXPENSING: A qualifying business in an empowerment zone may take an immediate "expensing" deduction of up to $37,500 a year on purchases or equipment for in-zone use, instead of the $17,500 deduction allowable to taxpayers. For this purpose, all activity conducted by a corporation or partnership must be taken into account. It is not possible to isolate a particular activity and treat it as qualifying separately.
QUALIFICATIONS: EZ bond financing is allowable for an "empowerment zone business," defined generally as a corporation, proprietorship, or partnership meeting the following requirements:
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It must be an active, in-zone business.
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Substantially all of its tangible property must be located within the zone.
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At least 35% of its employees must be zone residents.
For the purposes of the EZ bond rules, a business may qualify even if it is part of a larger, non-qualifying business. For example, a local, in-zone branch of a national business may qualify under this rule.
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