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Empowerment Zone Section 179 Deduction

About

Federal Housing and Urban Development, Department of

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.


South Bronx Empowerment Zone

Address
Bronx Overall Economic Development Corporation


851 Grand Concourse


Suite 123



Bronx NY 10451
Phone (718) 590-6252
Fax (718) 590-3499

Upper Manhattan Empowerment Zone

Address
Upper Manhattan Empowerment Zone Development Corporation


55 West 125th Street, 11th Floor




New York NY 10027
Phone (212) 410-0030
Fax (212) 410-9083
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