The Community Renewal Employment tax credit is available for businesses operating in designated renewal communities. The credit is 15 percent of the first $10,000 in wages paid to full-time or part-time employees employed at least 90 calendar days. The employee must be a resident of the renewal community. No credit can be claimed for employees owning more than 5 percent of the business as well as for employees who are their spouses and dependents.
The taxpayer reduced their taxes up to $1,500 per qualified employee by hiring qualified employees. The credit is 15% of up to $10,000 qualified wages for qualified employees who reside in the renewal community. This would give the taxpayer a potential tax credit of $1,500 ($10,000 x 15%) per qualified employee.
By hiring qualified employees who reside in the renewal community, a tax credit of 15% of the first $10,000 of qualified wages paid per employee may be taken on the federal return.