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Employees
working for an enterprise zone business are eligible to take
advantage of the "Enterprise Zone Employee Credit." An
employee qualifies for a credit against their personal income tax
if the following apply:
-
Employee
must perform 50 percent of compensated work within the
boundaries of the zone
-
Employee
must spend at least 90 percent of the work time on activities
directly related to the zone business
-
Employee
does not work for federal, state, or local government
-
If
the employee works for a nonprofit organization, the
organization must not receive funding from a federal, state,
or local government
The credit is 5
percent, up to a maximum of $525, of qualified wages earned. The
credit reduces tax only and may not be refunded or carried
forward. Additionally, you must reduce the credit by nine cents
($.09) for each dollar over $10,500 in wages earned. |
