Empowerment Zone Employment Credit
Designed to spark economic rejuvenation, the Empowerment Zone Employment Credit (EZEC) rewards employers committed to enhancing local economies by employing residents within designated areas. Discover how EZEC can benefit your business.
Key Benefits of EZEC
- Community-Focused: Available to employers who support the community by hiring residents who both live and work within empowerment zones.
- Significant Savings: Receive up to $3,000 per eligible employee annually, fostering local employment and economic growth.
- Strong Incentive: Benefit from a credit calculated as 20% of up to the first $15,000 of qualified wages paid to each eligible employee per year.
- Ongoing Opportunity: Extended through 12/31/2025, this incentive is designed for long-term community development and business planning.
Eligibility
- Local Employment Commitment: Employers must hire residents of empowerment zones who perform all their services within that zone for the employer.
- Calculated Benefit: The credit is a percentage of qualified wages, reinforcing your investment in creating enduring local employment opportunities.
Additional Considerations for Growth
When evaluating the potential for business relocation, expansion, or simply maximizing current operations, geographic incentives such as EZEC should be top of mind. In collaboration with our Credits and Incentives and State and Local Tax practices, we help you navigate the intersection of opportunity zones, tax benefits, and business strategy.
Where your business chooses to grow has significant implications. The empowerment zone must house your principal business activity, ensuring that your growth directly contributes to the revitalization of the community. By aligning your business objectives with the goals of EZEC, you not only benefit from considerable tax incentives but also play a pivotal role in stimulating local economic development.
