GO ZONE UPDATES
• Housing legislation signed by the President July 30 waives the deadline for beginning construction of self-constructed GO Zone property placed in service after December 31, 2007. See GO Zone News for more information.
It's time to rebuild. Let's GO!
How businesses can benefit from GO Zone legislation
Butler, Snow, O’Mara, Stevens & Cannada, PLLC, a leading regional law firm with offices in Jackson, Memphis, the Gulf Coast and Bethlehem, Pennsylvania, wants businesses to know what is available under the Gulf Opportunity Zone Act. The Act provides special tax incentives to spur rebuilding in the hurricane-damaged areas of Mississippi, Louisiana and Alabama.
Key GO Zone incentives
Congress created the Gulf Opportunity Zone (GO Zone) to promote reinvestment and recovery. Key provisions include:
• 50% bonus depreciation is available to businesses of all sizes for investments in equipment, non-residential real property or residential rental property.
• NOL carryback for qualifying losses extended from 2 years to 5 years.
• Tax-exempt bonds worth about $4.9 billion are available in Mississippi. These tax-exempt, private-activity bonds can be used to finance commercial projects. Participating businesses could save up to 200 basis points in interest costs annually. Attractive for projects of $3 million and above.
• Increased deduction for qualifying tangible personal property for small businesses.
• Employee Retention and work opportunity tax credits available to qualifying employers.
• Portion of demolition and cleanup expenses may be expensed instead of capitalized.
• New markets tax credits increased for qualifying investments in low-income communities.
• Increased qualified rehabilitation credits for historic structures.