The 2000 Community Renewal Tax Relief Act established the Renewal Community Initiative estimated at $17 billion in tax incentives to stimulate job growth and economic development in distressed communities. The RC program provides a federal income tax credit equal to $1,500 per qualified employee, per year. The Act promotes economic development through tax deductions, capital gains exclusions, and bond financing.

Effective January 1, 2002, 15% of the first $10,000 ($1,500 max.) of a qualified employee’s annual wages received at “qualified sites” are considered a federal income tax credit for the employer of record. Employers can apply this credit directly to their corporate tax liability or as a pass through credit to individual shareholders of a sub-S or LLC organization. Please refer to the “Location Overview” for geographical areas for this federal program.

• Geographic RC boundary
• Existing employees
• Maximum of $1,500 per employee, per year
• Work must be in RC


• Federal Income Tax credit
• Pass through credit to LLC and S Corporations
• Retroactivity begins Jan. 1, 2002
• One year carry back and Twenty year carry forward


• At calendar end, end Employee information to Blymas to identify eligible
   employees, provide documentation for IRS, and to maximum Tax Credit amount.
• Include with Tax Return