Empowerment Zones Remained in Effect Through 2014
The IRS (Internal Revenue Service) stated on last Monday that entire designations related to EZ (Empowerment Zone) continued to be in effect by the end of 2014.
Specific rural and urban areas where taxpayers and employers are eligible to get particular tax incentives are known as EZ. The announcement of IRS mainly impacts Organizations that intend to take benefit from the given tax incentives related to EZ in their return, original or amended, pertaining to 2014.
In order to address the specific provisions of “Tax Increase Prevention Act 2014”, IRS released Notice number 2015-26 in the month of March. It was stated in the Notice that all the selected EZ as at 31 December 2014 will remain as EZ for the year 2014 as well and have an expiration date of 31 December 2014. However, the Notice gave an option to the concerned municipality or state to decline this extension via a notification to the Revenue.
As per the Notice, time limit for relevant municipality and state for informing the Revenue was 11th of May 2015. However, none of the states of municipalities opted to reject the extension resulting in same EZ in effect as at 31 December 2014 as were in 2013.
EZ were created by the Congress in the year 1993 and most of the zones were to expire on 31 December 2009. This is the 3rd extension of the expiry date.
The designation of Columbia’z EZ finished on 31 December 2011.
For further details and information and a comprehensive lists of EZ locations, go through Form 8844, EZ Employment Credit.