GO ZONE INFORMATION

Go Zone Brief

The Gulf Opportunity Zone Act of 2005 is federal legislation that was passed by Congress and signed into law by President Bush in December 2005. This legislation provides for federal tax incentives to areas affected by Hurricanes Katrina, Rita, and Wilma that were designated as warranting individual or public and individual assistance.  Stone County is among the Mississippi counties included in the Zone. The Act’s key provisions:

• 50% bonus depreciation is available to businesses of all sizes for investments in equipment, non-residential real property or residential rental property.

• NOL carryback for qualifying losses extended from 2 years to 5 years.

• Tax-exempt bonds worth about $4.9 billion are available in Mississippi. These tax-exempt, private-activity bonds can be used to finance commercial projects. Participating businesses could save up to 200 basis points in interest costs annually. Attractive for projects of $3 million and above.

• Increased deduction for qualifying tangible personal property for small businesses.

• Employee Retention and work opportunity tax credits available to qualifying employers.

• Portion of demolition and cleanup expenses may be expensed instead of capitalized.

• New markets tax credits increased for qualifying investments in low-income communities.

• Increased qualified rehabilitation credits for historic structures.

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