atlantarenewalcommunity.org

The Renewal Community (RC) invests in businesses by directing owners, developers and investors to special federal tax savings established specifically for the 100 intown neighborhoods.  As a proprietor or investor in these neighborhoods, you can qualify for tax incentives that not only save your business money, but also help to employ residents and improve the quality of life in that neighborhood. Additionally, if you hire residents from these targeted neighborhoods, you qualify for other tax credits.

The bottom line: You have more money to invest in the growth of your business and the economic life of a valuable community. Many of these tax incentives can be included on federal business tax returns.

Eligible Tax Credits

• Renewal Community Employment Credit – Businesses that hire or have hired residents from the targeted areas are eligible for yearly wage credits up to 1,500 per employee.

• Work Opportunity Tax Credit – Owners may receive a credit up to $2,400 per new hire from a specified group of hard-to-employ residents who live in one of the Renewal Community neighborhoods. For Long-Term Family Assistance recipients, employers can save up to $9,000 per new hire, over a two-year time period (40% of the first $10,000 in wages for the first year and 50% for the second year).

Eligible Tax Deductions

• Commercial Revitalization Deduction – Businesse owners that construct or rehabilitate commercial property in the RC can deduct a portion of the costs of acquisition and rehabilitation over a shorter period of time than permitted under standard depreciation rules.  A business can elect a deduction of one-half of "qualifying revitalization expenditures" (QRE) up to $10 million for any one project in the year the building is placed in service, or the business can deduct all QRE pro rata over 10 years.

•  Increased Section 179 Deduction – RC businesses can deduct up to an additional $35,000 for equipment or machinery expenses, including computer software upgrades.

• Environmental Clean-up Cost Deduction – Business owners can deduct up to 100 percent of costs associated with cleaning up any Brownfield site (or threat) within the RC in the tax year that the expense is incurred.
  

Eligible Tax Exclusions:

• Capital Gains Exclusion – Property or interest held in a Renewal Community (RC) may be eligible for a Zero Percent Capital Gains Exclusion if the asset is held for a minimum of five years.