U.S. Rep. Joe Wilson, R-S.C., is a chief co-sponsor of legislation that will create new tax credits to give incentives to businesses to hire residents of federally-designated Promise Zones like the one that is in part of his congressional district.
The bill, the Promise Zone Job Creation Act, also would encourage new investments to bring property, equipment or software to hard hit communities in the zones. South Carolina’s Promise Zone includes all or parts of Allendale, Bamberg, Barnwell, Colleton, Hampton and Jasper. The designation, which provides priority help for organizations seeking federal grants and loans that help the area, was awarded in April 2015.
“I am grateful to be an original co-sponsor of the Promise Zone Job Creation Act of 2016 to incentivize businesses that create jobs in designated Promise Zones,” Wilson said in a press release. “I’ve seen first-hand the benefits of the Promise Zone designated has had on South Carolina’s Second Congressional District. The S.C. Lowcountry Promise Zone, which includes Barnwell County, has created over 250 quality jobs since being designated a Promise Zone in 2015. The investment and resources have provided opportunities for the community to grow over the last year, and I look forward to seeing the positive impact of the Promise Zone in the future.”
Danny Black, president and CEO of the SouthernCarolina Alliance which is lead organization for the Promise Zone, praised Wilson’s leadership.
“We appreciate Congressman Joe Wilson’s leadership on the issue of tax incentives for businesses investing in federal Promise Zones,” he said. “This bipartisan effort is not a government ‘handout’ program. Instead, it provides incentives to those companies that create jobs and invest in rural communities like ours, which I believe should receive full bipartisan support.”
The Promise Zone Job Creation Act was originally introduced by Senator Bob Casey (D-PA) in the 113th Congress. This bipartisan, bicameral effort will establish employment tax credits and bonus depreciation to enable businesses and residents to realize more immediate economic benefits.
The Promise Zone Job Creation Act will:
- Create employment tax credits: This legislation would create an employment credit to be provided to businesses that employ Promise Zone residents. Credit would apply to the first $15,000 of qualifying zone employee wages. The credit rate would be 20 percent for zone residents who are employed within the zone and 10% for zone residents employed outside of the zone.
- Establish Bonus depreciation: Qualified property placed in service within the zone would be eligible for additional first-year depreciation of 100 percent of the adjusted basis of the property. This includes tangible property with a recovery period of 20 years or less, water utility property, certain computer software, and qualified leasehold improvement property. The property must be placed in service within the zone while the zone designation is in effect.