Where are the Empowerment Zones/Enterprise Communities?; Where are the Dot-Com Companies; and is the Dot-Com Bubble Going to Burst?
1. Santa Ana, Desert Communities, Watsonville here we come.
We are constantly asked where are the Tax Favored Zones, and what are the benefits of being in one. The answers are not that simple, but you want to start with the HUD MAP. The trouble is trying to read the maps. They assume you have an address. If you go to California you might hit a couple of areas that you may be familiar with such as Palm Springs or the Central Valley and you will be very surprised, both have Zones of over 1000 miles.
Closer to home and near some interesting places, like South Coast Plaza, one of Southern California's Premier Shopping Areas, and near the 55 Freeway between Newport Beach and Irvine/Tustin is the Santa Ana Empowerment Zone.
What are the benefits, wage tax credits for "at risk" youth from the Zones, that being anyone from the age of 18 to 25? Tax exempt financing of $3M or more, and increased IRC Section 179 expensing. But if the Distressed Communities Legislation is passed, as promised by the House Republican Leadership and the President next month then the benefits could be significantly greater.
2. Dot-Com Companies, where art thou?
The L.A. Times was kind enough to tell us that Dot-Com Companies are "in" and where to find them. Based on the ratio of Dot-Com Companies to regular companies, some smaller cities, such as Ogden, Utah, and Las Vegas, Nevada made the top five cities, with San Francisco number one and San Diego number three.
3. Will the Dot-Com Bubble Burst?Garage.com gives us two more years says the New York Times. We suggest longer if the Distressed Communities Tax Legislation is passed and ZERO CAPITAL GAINS FREE ZONES comes to pass, with the benefit being that the underserved neighborhoods will be were the next wave hits. You heard that first here. Watsonville, Desert Communities, and Orange Cities here we come.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.