HUD No. 08-PH5
February 26, 2008
HUD OFFERS TAX TIPS FOR EMPLOYERS AND WORKING FAMILIES IN CALIFORNIA, ARIZONA, NEVADA AND HAWAII
April 15th is just around the corner and thousands of businesses around the country will be paying too much money
to Uncle Sam, unaware of the tax savings that are available to them. The Department of Housing and Urban Development is hoping to change that with the release of a series of tax tips that will help cut the tax burden of businesses located in certain federally designated areas. In California, the areas include San Francisco, Los Angeles, San Diego, Fresno, Santa Ana, Desert Communities, Parlier and Orange Cove. In Arizona, it includes a portion of Tucson.
In all four states, there is an opportunity for working families to receive an Earned Income Tax Credit that can put money in their family budget even if they pay little or no taxes.
For example, a grocery store owner who hires an employee who lives in Fresno or Santa Ana, California's or Tucson, Arizona's Empowerment Zone can take up to $3,000 off his taxes. A grocery store owner who hires an employee
who lives in one of the Renewal Communities in San Francisco, Los Angeles, or San Diego, can take up to $1,500
off his taxes. The owners of a landscaping company who plan to hire just one summer worker who lives in a
Renewal Community can cut their tax bill by as much as $1,200. These are just two examples of dozens of tax tips.
"I don't know of a single business owner who wouldn't leap at the opportunity to keep their hard earned money in
their pockets instead of sending it to Washington," said HUD Deputy Secretary Roy A. Bernardi. "These tax tips not only point to the advantages of doing business in these areas, but will help business owners save money."
HUD also is partnering with the Internal Revenue Service, local housing authorities, nonprofit organizations and local governments to alert working families that they may be eligible for a tax credit that actually puts money into their family budget. A family earning less than $39,783 with two children could receive a check from the IRS for as much
of this credit," said Richard Rainey, HUD's regional director. "Whether saving money for a downpayment on a house,
or to pay their rent, or to splurge on something a little extra, every dollar counts."
The EITC does not affect eligibility for low-income housing, Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), or food stamps.
Other tax benefits are available for employers through several additional federal programs. For businesses, there is additional potential $4,200 tax benefit if a new employee hires a youth or a member of a group with traditionally
high unemployment. Welfare to Work Credits provide a credit of $3,500 in the first year and $5,000 the second year for each newly hired long-term welfare recipient.
To learn if your California or Arizona business is in an area eligible for these tax credits, check these maps:
Here are the Renewal Communities and a link to the map to determine if your business is located within its area:
Los Angeles, California
Orange Cove, California
San Diego, California
San Francisco, California
Here are also Empowerment Zones in California and Arizona where tax advantages are available.
Santa Ana, California
Desert Communities (Riverside County)
WHAT IF MY BUSINESS IS OUTSIDE THE BOUNDARIES?
You would still be eligible for a tax credit of up to $1,500 if you hired a new worker who lives within the boundary
of the Renewal Community or Empowerment Zone.
Where can I learn more?
Here's an easy "Tax Tips" for businesses and accountants on Renewal Communities:
Here's an easy "Tax Tips" for Empowerment Zone businesses and accountants
Here's a joint IRS-HUD webcast on the tax benefits:
EARNED INCOME TAX CREDIT
For information, and to determine your eligibility, on the Earned Income Tax Credit, the Internal Revenue Service
has established this web site: http://www.irs.gov/individuals/article/0,,id=96406,00.html
Several local HUD offices in the region are in the partnership to assist those interested in the Earned Income Tax Credit benefits.
The Phoenix HUD Office is partnering with the Flagstaff Housing Authority (928) 526-0002.
Other partners include:
City of Tucson Community Services Department, Emily Nottingham Executive Director (520) 791-4739 partners
with United Way of Southern Arizona. Contact Dan Duncan, vice president, at (520) 903-9000, ext. 810.
Glendale Community Housing Services Department, Erik Strunk, Executive Director (623) 930-2180 partners
with the IRS, our Community Volunteer Program, and AARP. The contact person is Angie Wilkie, Neighborhood
Services Coordinator, (623) 930-2915.
Flagstaff Housing Authority, PHA contact is Kurt Aldinger, Director of Public Housing (928) 526-0002 (not able
to get partner's name at this time).
Tempe Housing Authority, Liz Chavez (480) 350-8950 partners with the Tempe Community Council Diane
Bennett at (480) 940-9345.
The Fresno HUD Office is partnering with the United Way, a partner in the Central Valley Financial Literacy Initiative
at (866) 559-4211 that people can call to get VITA / EITC / ITIN / Tax refund help at over 50 sites in Fresno
County. Interested persons can also call "211", give their zip code and language preference to find the hours and locations staffed by a wide array of community volunteers and organizations.
The Santa Ana Empowerment Zone is partnering with the OC EITC Coalition to host community tax days on March
1 and March 8. Santa Ana is working closely with OC Legal Aide Society with their I-Can internet tax filing program and also working with the OC United Way. Call Sahara Navarro of the United Way at (949) 263-6127 or LauraPantaleon of OC Legal Aide Society at (714) 571-5264 for questions.
The Aloha United Way has created a statewide EITC program. The contact is: Susan Tamanaha at (808) 536-1951
or email email@example.com for more information.
Las VegasThe Las Vegas HUD Office has partnered with the United Way, Consumer Credit Counseling, the Internal Revenue Service, local housing authorities and others. Together they have 27 sites.
The Reno HUD Office is distributing materials in partnership with the Community Services Agency Development Corporation (775) 786-6023 and the Reno Housing Authority (775) 331-5138. The local HUD contact is Luthene Andrews, program assistant (775) 824-3700.