Facts:

• S-Corporation with less than 20 employees
• Located in an Empowerment Zone
• 3 employees live in the Empowerment Zone

Results

• $18,000 in credit over 2 prior years claimed by filing amended returns

This client is a small closely held S-corporation with less than 20 employees. While a company this size would generally not produce large tax credits, this company is located in an Empowerment Zone. Additionally, 3 well paid employees live in the Empowerment Zone, so the employer was able to claim the Empowerment Zone Credit, a federal Location Based Incentive for these 3 employees retroactively for the past 2 years. The credit generated over the two years was $18,000.