Renewal Community Employment Credit
The Renewal Community Employment Credit (RC Wage Credit) gives businesses an incentive to retain or hire individuals who both live and work in a Renewal Community (RC). Businesses can claim the credit if they pay or incur "qualified zone wages" to a qualified employee. The credit can be up to $1,500, calculated at 15% of qualified wages up to a maximum of $10,000, and can be used for both full and part-time employees. The credit is available with respect to all RCs beginning January 1, 2002 through December 31, 2009.
The RC Wage Credit is simple and easy to calculate using IRS Form 8844. There is no pre-certification process with any government agency. You must verify that your employee lives and works in any of the 48 Renewal Community census tracts. Then, calculate wages paid to all qualified employees during the year, and multiply by 15%. Try using this worksheet for easy calculation:
For more helpful information, read these frequently asked questions or contact Virginia B. Wilson at 901-636-6457.