The Renewal Community Initiative utilizes federal tax incentives to offer residents and businesses the opportunities and resources to overcome seemingly insurmountable problems. Previously vacant lots and abandoned buildings can now become new business complexes and affordable housing. Employment opportunities for residents can expand and support services including childcare, education, and healthcare, thus enabling residents of the New Orleans Renewal Community to participate more fully in the workforce.

Orleans-Jefferson Renewal Community Map.

Click anywhere on the map to view or download the map in pdf format.

Renewal Community • RC Benefits • Community Revitalization Deduction Application • Download Forms

Available Real Estate

What are the Business Incentives for being located in the Renewal Community?

• Up to $1,500 in Wage Credits per employee
• Up to $5,000 in Welfare to Work Credits per employee
• Up to $2,400 in Work Opportunity Tax Credits per employee
• Up to $35,000 in Section 179 Equipment Purchase Deductions
• Up to $12 million in Commercial Revitalization Deductions
• Zero Percent Capital Gains Rate for RC Assets

Commercial Revitalization Deduction

Businesses simply need to apply!!!!

A business can deduct up to $10 million in the year the building is placed in service or deduct the full amount of eligible expenditures pro rata over 10 years.
 
The annual CRD state allocation can not be carried over into future years. In the wake of Hurricane Katrina it is most pertinent that the entire $12 million revitalization deduction be allocated to lower the tax grid for local businesses, thus enabling them to reinvest in their companies and the community. All businesses in the Renewal Community which have conducted renovations or new construction in 2008 or plan to begin renovations in 2008 and have the business placed in service by 2008 should apply.
For more information click here.

Additional Information:

• How other companies are maximizing benefits
• HUD Renewal Community site
• HUD RC locator
• Louisiana State Renewal Community
• Louisiana GO Zone Guide
• Louisiana GO Zone Map

Renewal Community Tax Benefits

• Wage Credit: Up to $1,500 or 15 percent of an employee's salary up to $10,000 for each employee who lives and works in the renewal community.
• Work Opportunity Credit: Up to $2,400 for employees hired from groups that have high unemployment rates or other special employment needs, including youth ages 18 to 24 who live in the renewal community. Other qualified groups include veterans, ex-felons, food stamp recipients, vocational rehabilitation referrals and summer youth.
  Welfare to Work Credit: Up to $3,500 for the first year and $5000 for the second year for each new hire of someone on long?term family assistance.
• Increased Section 179 Deduction: Allows businesses to take a deduction of up to $35,000 on equipment purchases. That lets businesses deduct all or part of the equipment cost the year it is purchased instead of deducting the expense over time.
• Commercial Revitalization Deduction: Allows businesses that construct or rehabilitate commercial property to deduct a portion of the costs over a shorter period of time than permitted under standard depreciation rules.
• Environmental Clean up Cost Deduction: Allows businesses looking for land to deduct clean up costs of hazardous substances in qualified areas.
• Qualified Zone Academy Bonds: State OR local governments can issue bonds at no interest to them to finance certain public school programs IN SCHOOLS that have at least 35 percent of students eligible for free or reduced cost lunch program. Private businesses must contribute money, equipment or services equal to 10 percent of the bond proceeds. The federal government pays the interest in the form of tax credits.
• Zero Percent Capital Gains Rate: A business that holds an asset for at least five years does not have to pay taxes on the profit of its sale.
• New Markets Tax Credit: Investors in qualified projects can obtain a tax credit of 5 to 6 percent of the amount invested for each of the years the investment is held, for up to seven years of the credit period.
• Low-income Housing Credit: Ten year credit for owners of newly constructed or renovated rental housing who set aside a number of units for low-income residents. The State must allocate a portion of its annual cap.
   Also available outside Renewal Communities
   Available in a limited capacity outside Renewal Communities
  

For more information, contact: Daphne Cola

Mayor’s Office of Economic Development
1340 Poydras St. Ste. 1000
New Orleans, LA  70112
504-658-4200