The Federal Empowerment Zone Wage Tax Credit (FEZ) program is an incentive program established in 1994 to revitalize the economics of select economically distressed communities across the country. Specifically, the FEZ program provides a federal income tax credit of up to $3,000 per qualified employee per year. Employers’ facilities or work sites must be located in the Zone and Employees must live in the zone.

The FEZ, credit is 20% of the first $15,000 ($3,000 max.) of an employee’s annual wages. Employers can take this credit for each qualifying employee through 2009 and apply it directly to their corporate tax liability or as a pass through credit to individual shareholders. In addition, credits are retroactive for 3 years, so that credits of up to $9,000 per qualified employee may be realized immediately. Refer to the attached Wage Tax Credit Estimator.

• Geographic zone boundary
• Existing employees
• Maximum of $3,000 per employee, per year
• Work must be in FEZ
• Employee must be in FEZ


• Federal Income Tax Credit
• Pass through credit to LLC and S Corporations
• Three years retroactive
• One year carry back and Twenty year carry forward


• At calender end, send Employee information to Blymas to identify eligible    employees, provide documentation for IRS, and to determine maximum Tax    Credit amount.
• Blymas generated tax credit and returns documentation to client.
• Include Tax Return.