You’ll need to wait until the employee completes 90 days with your company during the same calendar year. Once they reach the 90-day mark (or if they qualify for an exception), you can include them in your EZEC claim on your next tax return.
The Empowerment Zone Employment Credit (EZEC) is a federal initiative that incentivizes business owners to operate in and hire residents of neighborhoods that the government hopes to stimulate. Businesses within an empowerment zone are eligible for tax credits when they employ residents as full-time or part-time employees.
The EZEC’s benefits can be substantial. Each qualifying employee can earn the business up to $3,000 annually or 20% of the first $15,000 any qualifying employee receives. However, the EZEC is only available until December 31, 2025 — barring the possibility of receiving an extension during the year.
An empowerment zone is an area that the federal government has determined would benefit from an initiative that incentivizes businesses to hire local employees. Empowerment zones can be urban or rural neighborhoods. Empowerment zones exist in many regions, states, counties and cities, including some near the Polston Tax Oklahoma City branch.
Your business could be eligible for the EZEC if it meets these criteria:
At Polston Tax, we offer legal and accounting services that support EZEC implementation. We can provide evaluations and consultations that help you initiate EZEC claims and receive full empowerment credit. Our personalized approach aligns your accounting strategy with company goals and legal requirements when managing EZEC matters. We also offer various other services that can help you maximize the EZEC’s advantages and protect your business. Our accounting, tax preparation and tax resolution offerings coincide with our EZEC capabilities for a dependable, holistic service suite.
Polston Tax is a trusted business accounting and tax law services provider for companies interested in claiming the EZEC. Our firm features numerous experienced tax attorneys, accountants and certified public accountants (CPAs). These professionals are highly knowledgeable in their fields, allowing them to accurately apply the EZEC to your business’s unique circumstances.
In addition to our EZEC knowledge and experience, you can trust us because this type of credit corresponds naturally with our service model. Polston Tax is committed to positively impacting the communities we serve. Our Oklahoma branch overlaps with empowerment zones — together, we can contribute to helping the community thrive.
Our attorneys, CPAs, case managers and other professionals can help your businesses capitalize on the federal empowerment zone credit. Please contact us online to schedule an appointment with your local Polston Tax branch while the EZEC remains available, as it is set to end on December 31, 2025.
You’ll need to wait until the employee completes 90 days with your company during the same calendar year. Once they reach the 90-day mark (or if they qualify for an exception), you can include them in your EZEC claim on your next tax return.
After the deadline, you can no longer claim new credits. However, if you carry forward unused credits from 2025, you can still use those in future years (generally for up to 20 years). Congress may also extend the program, though that’s not guaranteed.
Yes. Businesses operating in empowerment zones may be eligible for:
– Low-cost loans from community development organizations
– Grants for certain types of business activities
– Other tax incentives designed to support empowerment zone businesses
– Training programs to help employees develop skills
– Once you establish eligibility for the EZEC, you may qualify for these additional opportunities. Polston Tax can help identify what else might be available to your business.
Yes. Polston Tax is deeply committed to positively impacting the communities we serve. Our Oklahoma City branch overlaps with empowerment zones, and we’re passionate about helping businesses and communities thrive together. This alignment makes the EZEC a natural fit with our service model and values.
Empowerment zones are not designated by ZIP code. Instead, they’re determined block by block by either the Department of Housing and Urban Development (HUD) for urban zones or the Department of Agriculture (USDA) for rural zones. There are 40 total Empowerment Zones in the U.S. (30 urban and 10 rural) in major cities and regions including:
Baltimore, Boston, Chicago, Cincinnati, Detroit, Los Angeles, Miami, Minneapolis, New York, Philadelphia, San Antonio, Oklahoma City, and others
You can verify your business location on the IRS website or contact Polston Tax to check if you’re in an eligible zone.
