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DCEZ Tax Incentives Available

October 2, 2008


We are pleased to inform you that District of Columbia Enterprise Zone (DCEZ) Tax Incentives are available once again to private for-profit businesses located in, or doing business within, the DCEZ.

Last week, President Bush signed into law legislation that, among other things, extends the DCEZ designation through December 31, 2009.  The narrowing of opportunities within the capital and debt markets today make these incentives more important than ever before.  For example:

If your pending or planned capital project is situated within the zone, you seriously should consider lowering your borrowing costs through the issuance of up to $15 million of tax exempt bonds.  The interest cost on long-term tax-exempt EZ Bonds, historically has been 1.5 to 2 percentage points below long-term conventional rates;   

  • You can take advantage of employer tax credits of up to $3,000  for each District resident employed at a business facility located within the zone; 
  • You may be able to claim an additional personal property expensing allowance worth tens of thousands of dollars; 
  • You may be eligible to claim zero percent capital gains tax treatment on earnings derived from cash investment in Qualified EZ Businesses.
For your review, a copy of the EZ tax incentive brochure is available for download. The document is an accurate summary of the available federal tax benefits and how they most efficiently may be claimed.

For additonal information or services to provide you the legal guidance needed to ensure that you obtain the financial benefits to which you are entitled, please contact:

Michael Vincent Hodge
(202) 661-2231

Linda Schake

Micheal Hodge and Linda Schakel of Ballard, Spahr, Andrews & Ingersoll, LLP have been intimately involved in structuring EZ Bond transactions and in arranging for the award of the federal EZ incentives since the inception of the initiative. Micheal Hodge served as the Director of DCEZ and Revenue Bond Program.

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