Buffalo-Lackawanna Renewal Community
A Renewal Community (RC) designation stimulates economic development in eligible neighborhoods by offering Federal tax incentives to encourage businesses to locate or expand operations and to hire residents of the RC. The tax benefits took effect January 1, 2002 and remain until December 31, 2009.
Buffalo-Lackawanna, one of 40 designees (one of five in NYS) selected by the Department of Housing and Urban Development (HUD), is 11 square miles that include sections of the Lower West Side, East Side, Downtown, Seneca-Babcock, Broadway-Fillmore, the former Republic Steel area of South Buffalo and the First Ward in Lackawanna.
Summary of Tax Incentives
Renewal Community Employment Credit (RC Wage Credit) ? Credit against Federal Taxes up to $1,500 for businesses for each year of RC designation for every existing employee and new hire who lives and works in the RC. Available January 1, 2002 through Dec. 31, 2009. Cannot count wages for both the WOTC and RC credit.
Increased Section 179 Deduction-Allows businesses to claim increased Section 179 deduction. The increase can be as much as $35,000 for a qualified Renewal Community business. May be claimed on property such as equipment and machinery.
