Rural Benefits Table

Round III Benefits for Rural Empowerment Zones

Item

Round III

Period

December 31, 2009

EZ/EC Grant Funds
To be determined.

Tax Exempt Bonds

Round III rural zones can each issue up to $60,000,000 in "new bonds" to finance zone facilities in addition to Round I type tax exempt bonds.

Round III "new bonds" are not subject to private activity bond volume caps or the special limits on issue size applicable to Round I type issues.

*Wage Credit Provision:
(Available to all EZs until 12/31/09)

20% tax credit for the first $15,000 in wages paid to a qualified employee (for a tax credit of up to $3,000 per employee).

**Work Opportunity Tax Credit

40% tax credit for the first $6,000 first-year wages paid to a member of a targeted group, for a total tax credit of up to $2,400 per employee. Targeted employees include high risk youth residents of EZs and ECs, food stamp and SSI recipients, vocational rehabilitation referrals and others, until 12/13/01. (May be extended.)

Internal Revenue Code

26 U.S.C. § 179 Expensing:
(Available to all EZs until 12/31/09)

Up to $35,000 of additional Section 179 expensing, however, the property in question must be on the parcels qualified under the poverty rate criteria.

Property on parcels included under the "developable site" per that eligibility provision is not eligible property (see Eligibility Criteria Table, below.)

Brownfields Deductible Expense

(not exclusive to EZs and ECs)

Also available to Round III EZs.

Qualified Zone Academy Bonds

(A national limitation across all Empowerment Zones and Enterprise Communities of up to $400 million each year for years 1998 and 1999)

Also available to Round III EZs.

The statute does not expressly provide for an allocation to rural Empowerment Zones or Enterprise Communities.

* Employers using the EZ Wage Credit Provision can not also count wages towards Work Opportunity Tax Credit.

** Employers using the Work Opportunity Tax Credit can not also count wages toward the EZ Wage Credit Provision.

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Item	Round III
Period	December 31, 2009
EZ/EC Grant Funds	To be determined.
Tax Exempt Bonds	Round III rural zones can each issue up to $60,000,000 in "new bonds" to finance zone facilities in addition to Round I type tax exempt bonds. Round III "new bonds" are not subject to private activity bond volume caps or the special limits on issue size applicable to Round I type issues.
Wage Credit Provision: (Available to all EZs until 12/31/09)*	20% tax credit for the first $15,000 in wages paid to a qualified employee (for a tax credit of up to $3,000 per employee).
**Work Opportunity Tax Credit	40% tax credit for the first $6,000 first-year wages paid to a member of a targeted group, for a total tax credit of up to $2,400 per employee. Targeted employees include high risk youth residents of EZs and ECs, food stamp and SSI recipients, vocational rehabilitation referrals and others, until 12/13/01. (May be extended.)
Internal Revenue Code 26 U.S.C. § 179 Expensing: (Available to all EZs until 12/31/09)	Up to $35,000 of additional Section 179 expensing, however, the property in question must be on the parcels qualified under the poverty rate criteria. Property on parcels included under the "developable site" per that eligibility provision is not eligible property (see Eligibility Criteria Table, below.)
Brownfields Deductible Expense (not exclusive to EZs and ECs)	Also available to Round III EZs.
Qualified Zone Academy Bonds (A national limitation across all Empowerment Zones and Enterprise Communities of up to $400 million each year for years 1998 and 1999)	Also available to Round III EZs. The statute does not expressly provide for an allocation to rural Empowerment Zones or Enterprise Communities.