Renewal Community Program

Renewal Community Employment Credit—15% of qualified wages (maximum credit is $1,500 per qualified employee per year)

Increased Section 179 Deduction—allows a business to choose to deduct all or part of certain qualifying property in the year placed in service. An increase of up to $35,000 per year is allowed for “qualified renewal property” placed in service before January 1, 2010.

Commercial Revitalization Deduction—qualified revitalization expenses are chargeable to a capital account for any qualified revitalization building in either of the following ways: Deduct half of the expenses for the tax year the building is placed in service, or Amortize all of the expenses over a 120 month period beginning with the month the building is placed in service.

Environmental Cleanup Cost Deduction—a business can choose to deduct “qualified environmental clean-up cost” in the tax year expenses are paid or incurred. This deduction can be taken in lieu of adding the cost to the basis of the property, and if depreciable property, recovering the cost by taking depreciations over a specified recovery period.

Eligibility:

Businesses must be located within the boundaries of a Renewal Community.