Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
04 June 2000
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The New Economy comes to Low and Moderate Income Areas; San Francisco, CA, San Diego, CA, Phoenix, AZ, Long Beach, CA, Las Vegas, NV, and many other communities will not be the same.
1. The New Economy comes to Low and Moderate Income Areas.
The President and the Speaker of the House reached an agreement on Distressed Communities on May 23, 2000 and on May 25, 2000 the House Small Business Committee marks up two bills that are the beginning of a New Economy to the inner cities, and under utilized rural areas, if you believe the hype. The House Ways and Means Committee meets this week to put together the tax incentives agreed to on May 23, 2000, and the entire package will be moving to the House Floor the following week.
Where is all the publicity on these measures? Where are the articles in The Industry Standard which is the weekly [daily if you get their e-mails] bible to the New Economy, Fast Company, and Business2.0 and all the others, including the bible for small business, INC are silent.
Well the Taxman86 and our friends [Our website indicates many friends who share our love for the small guys, including the founders of Sohodojo, home of the North Carolina nanocorp. (we are on their advisory board) Jim Salmons and Timlynn Babitsky. Check out their website for the latest in the world of the New Economy will conquer all] will be bringing you the latest up- to-date information on these important pieces of legislation, mainly because they effect the inner cities, that we enjoy so much.
2. Where are the Low and Moderate Income Areas?
As defined in H.R. 4530 the following areas will be covered:
LOW- OR MODERATE-INCOME GEOGRAPHIC AREA- The term `low- or moderate-income geographic area' means--
- `(A) a census tract, or the equivalent county division as defined by the Bureau of the Census for purposes of defining poverty areas, in which--
- `(i) the poverty rate is not less than 20 percent;
- `(ii) in the case of a census tract or division located within a metropolitan area, the median family income for such tract or division does not exceed the greater of 80 percent of the statewide median family income or 80 percent of the metropolitan area median family income; or
- `(iii) in the case of a census tract or division not located within a metropolitan area, the median family income for such tract or division does not exceed 80 percent of the statewide median family income; or
- `(B) any area located within--
- `(i) a historically underutilized business zone (HUBZone), as defined in section 3(p) of the Small Business Act (15 U.S.C. 632(p));
- `(ii) an urban empowerment zone or an urban enterprise community, as designated by the Secretary of the Department of Housing and Urban Development; or
- `(iii) a rural empowerment zone or a rural enterprise community, as designated by the Secretary of the Department of Agriculture.
Where are these areas in downtown San Francisco, San Diego, etc.?
If you go to the HUBZONE locator you may be surprised to find that The Industry Standard Magazine will be included within a Low and Moderate Income Area, as is The Redherring and ALL of downtown San Diego from one end [Seaport Village] to another [Little Italy/The East Village/ The Barrio].
If this legislation becomes law, and it will, then all kinds of startup capital and tax incentives will begin to flow into the inner cities, with the creative ones [lawyers and accountants] not far behind. Is it possible that 39% investment tax credits will be available for investing in startups within the Low and Moderate Income Areas? How about real estate developments for commercial projects, including mixuse projects where residential income [work/live lofts are commercial not residential] is less then 50%?
Is it possible that Urban Home-based Businesses will be found in upscale highrises that just so happen to be in Low and Moderate Income Areas in downtown San Diego, San Francisco, etc.? We believe so, and we intend to bring it to you at Taxsavings.Bigstep.Com.
Oh by the way, to our friends at Bigstep.Com, the Mission District in South San Francisco, is in a Low and Moderate Income Area, and this may be of interest to you all who need or are looking for additional capital, tax incentives, etc.
Let the games begin and see where the New Economy comes next.
Jim Schneider, LL.M.
Taxman86
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