News and Insights

Congress Extends the Federal Empowerment Zone Tax Credit Through 2013

Tax Development Jan 11, 2013

With the last minute passage of H.R. 8: American Taxpayer Relief Act of 2012, Congress retroactively extended the Federal Empowerment Zone Employment Credit (“Fed EZ Credit”) for calendar years 2012 and 2013. The Fed EZ Credit previously expired at the end of 2011.

The scope of the Fed EZ Credit remains unchanged and is based on 20% of qualified wages paid to eligible employees and is limited to $3,000 per qualified employee. A qualified employee is one who lives and works in a designated empowerment zone. Employers are not required to seek certification or to increase jobs in order to claim the credit. The extension of the credit provides taxpayers an opportunity to determine whether their locations are in Federal Empowerment Zones and take advantage of this program.

Ryan’s Credit and Incentives practice has extensive experience identifying and preparing enterprise and empowerment zone credits. Our client-focused approach ensures the maximum credit with the least amount of effort from our clients. Ryan provides tailored recommendations to maximize future credits, as well as state and local tax credits and negotiated incentives.


Allea Newbold