A business located in a Renewal Community would be eligible to expense certain environmental remediation costs, like businesses located in empowerment zones. First, Empowerment Zones tax incentives would be upgraded and standardized, with all Empowerment Zones being eligible for the wage credit and all Empowerment Zone tax incentives extended through 2009. Third, a new tax incentive will be added for all zones that allows tax free rollovers to occur for investments that are reinvested in the zone areas. Taxpayers who invest in certain community development entities that make investments and loans in low-income areas would receive a tax credit designed to offset costs associated with their investment. APIC's would be privately managed, for profit investment companies licensed by HUD for the purpose of making equity and debt investments for large-scale projects, such as shopping centers and manufacturing facilities, that locate in distressed urban and rural areas.
Beneficiaries maintain the right to an alternative option.
One of the requirements is that owners must have received a credit allocation from the relevant State agency. These bonds may be issued for a variety of purposes, including to fund infrastructure, housing for low and middle income individuals, student loans, small manufacturing facilities, and redevelopment. Eligible individuals may use their IDA for the benefit or their spouse or dependent. Individual and matching deposits are not co-mingled with matching dollars kept in a separate parallel account. Both private sector and public funds could also be contributed to the accounts.