What is the Empowerment Zone (EZ) Tax Credit?
Under the EZ Employment Credit, an employer may claim a 20% credit on up to the first $15,000 of wages paid to certain employees. Substantially all of the services must be provided in the employer’s trade or business within an empowerment zone and the employee’s principle residence while providing the services must be within the zone.
Does your business qualify?
Empowerment Zone Facts
Employers can retroactively go back to January 1, 2018 to calculate EZ credits.
Employers can earn up to $3,000 in credits per eligible employee.
Many times, a simple payroll report is all we need to calculate EZ credits!
Virtually any employer, or any size or industry, can qualify for EZ credits.
What is the empowerment zone credit limit?
The Empowerment Zone tax credit limit is 20% of the first $15,000 of a qualifying employee’s salary for a maximum of $3,000 per employee per year.
What are qualified empowerment zone wages?
Qualified wages are those paid to an employee in an empowerment zone.
How do I know if I live in an empowerment zone?
You can check the U.S. Department of Labor’s Empowerment Zone address locator to see if you’re in a Renewal Community or Empowerment Zone.