Federal Empowerment Zones



Congress established federal Empowerment Zones (EZ) across the United States to assist economically distressed urban and rural communities. To stimulate economic development and create jobs within these designated areas, the federal government offers a tax credit for businesses hiring employees that live and work in these communities.

Map of Federal Empowerment Zones

Benefits of Empowerment Zone Tax Credits

  • Employers can claim an annual federal tax credit of up to $3,000 for each employee that lives and works in a designated Empowerment Zone
  • Subject to the statute of limitations, employers can retroactively claim the credit if they have not taken it previously to reduce their federal income tax

How We Can Help

alliantgroup performs the entire process of identifying, calculating, applying for and managing the process of claiming these EZ credits. Our team will work with you to review and evaluate your information and records, draft and submit the necessary forms and applications, and prepare the required calculations and filing documentation for you to claim the tax credit.

We also work with our clients on a quarterly basis to calculate any available current year Empowerment Zone Tax Credits. These credits can then be used to reduce your quarterly estimated tax payments or your withholding taxes, thus providing cash flow savings in advance of filing your tax returns.

For immediate assistance, please contact Rizwan Virani.

For more information on the Empowerment Zone Tax Credit, please complete the form below to contact alliantgroup.