Empowerment Zones (EZs) were created by the U.S. Department of Housing and Urban Development (HUD). They encourage business growth and economic development in low-income communities. New York City has two Empowerment Zones, one located in Upper Manhattan and one in the South Bronx.
Employers can claim a federal tax credit of up to $3,000 for each full- or part-time employee who is an Empowerment Zone resident. The credit is based on 20% of the first $15,000 in wages earned by the qualifying employee. The credit can be claimed if the business pays qualified zone wages to a qualified zone employee. A qualified zone employee is any employee who meets both the following tests:
- The employee performs substantially all of his or her services for you within an empowerment zone and in your trade or business; and
- While performing those services, the employee’s main home is within that EZ.
For more information, contact:
Upper Manhattan Empowerment Zone Development Corporation
55 West 125th Street, 11th Floor
New York, NY 10027
Phone: (212) 410-0030
Fax: (212) 410-9083
Bronx Overall Economic Development Corporation
851 Grand Concourse
Bronx, NY 10451
Phone: (718) 590-6252
Fax: (718) 590-3499