Enterprising Businesses Zone In On Savings

Overview: Empowerment zone, enterprise community and enterprise zone—these sound like similar names for government initiatives that either boost investment in impoverished communities or rehabilitate decayed city neighborhoods. Companies and site-selection consultants have always considered multiple criteria to determine the site. Now, with so much cash and incentives on the table, they also have to factor in the benefits of locating in an EZ or EC to see if that site decision will make a difference in the project’s future success. Companies locating in Empire Zones must show that they will create jobs and capital investment. Benefits include a wage tax credit, investment tax credit, employment incentive credit, tax reduction credit, real property tax credit and sales tax exemptions. To take advantage of zones, site selectors first have to find out about community participation in zone programs. Empowerment zones and enterprise communities are HUD terms. Empowerment zones are smaller, neighborhood like zones usually in urban areas; ECs are larger areas that receive less money. Most states use the term “enterprise zones,” though some states have adopted their own terminology. To get the details for site selection read the article.

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Format: HTML | Date: Dec 2000 | Pages: 1