Certain Empowerment Zone businesses can deduct an extra $35,000 over the standard IRS Section 179 deduction. This deduction is on the cost of qualifying property.
To qualify, property must be placed into use during the year in which it was purchased.
The standard IRS Section 179 Deduction is $1 million. This limit is $1,035,000 for qualified purchases of equipment by businesses located within Empowerment Zones. This limit is reduced for property and equipment over $2,500,000 in value.
Empowerment Zones (EZs) were created by the Department of Housing and Urban Development (HUD) to encourage business growth in targeted communities. New York City has two Empowerment Zones, one located in Upper Manhattan and one in the South Bronx.
You cannot claim this credit if you have claimed state tax credits for your equipment.
Upper Manhattan Empowerment Zone
Upper Manhattan Empowerment Zone Development Corporation
55 West 125th Street, 11th Floor
New York, NY 10027
South Bronx Empowerment Zone
Bronx Overall Economic Development Corporation
851 Grand Concourse
Bronx, NY 10451