New legislation has been introduced in Congress to incentivize the hiring of residents of federally-designated Promise Zones, one of which exists in Hartford.
Introduced by U.S. Rep. John B. Larson, as well as fellow Democrat and Republican representatives, the bill would also encourage new investments to bring property, equipment, or software to areas with struggling economies..
The intent of The Promise Zone Job Creation Act is to establish employment tax credits and bonus depreciation to enable businesses and residents to realize more immediate economic benefits.
Federal officials last year designated an area in Hartford’s North End as a promise zone. Larson said the new legislation would encourage businesses to locate within the zone and hire residents.
The Promise Zone Job Creation Act would:
- Create employment tax credits 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 percent for zone residents employed outside of the zone.
- 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.
