Welcome to the Community Renewal Initiative

Information by State  Print version   What's New   Are you in a Renewal Community or Empowerment Zone? Check one address or hundreds using the Address Locator.   Tax Incentives in Empowerment Zones   Tax Incentives in Renewal Communities   RC/EZ Good Stories   EZ and RC Tax Incentives Create Valuable HUD-IRS Partnership Related Information   Community Renewal and Tax Incentives Publications   RC/EZ/EC Communities – your source for maps, contacts, census tracts, and more.   Additional Resources   Spotlight on Results: Capturing Successes in Renewal Communities and Empowerment Zones more...   HUD-IRS Webcast on Tax Incentives for Businesses   Final Rule on Performance Standards for Utilization of Empowerment Zone Grant Funds Helpful Tools   Q&As on RC/EZ Tax Incentives   Questions on HUD’s RC/EZ Programs? Call (202) 708-6339 or e-mail us at OCRTaxCredit@hud.gov

HUD's Initiative for Renewal Communities and Urban Empowerment Zones (RC/EZ)

Welcome to HUD's Community Renewal Initiative for Renewal Communities and Urban Empowerment Zones. The Renewal Community tax incentives are worth approximately $5.6 billion to eligible businesses of all sizes in Renewal Communities. These incentives encourage businesses to open, expand, and to hire local residents. The incentives include employment credits, a 0% tax on capital gains, accelerated depreciation through Commercial Revitalization Deductions, and other incentives.

The Empowerment Zone tax incentives are worth approximately $5.3 billion to small and large businesses in Empowerment Zones. These incentives encourage businesses to open and expand and to hire local residents. Empowerment Zone incentives include employment credits, low-interest loans through EZ facility bonds, reduced taxation on capital gains, and other incentives.

Tens of thousands of business owners and tax preparers visit HUD’s Address Locator each month to verify that businesses and the residences of employees are located in these areas.

HUD re-energized this initiative in December 2001 by designating 40 urban and rural Renewal Communities and 8 new urban Empowerment Zones. Together with 22 Empowerment Zones that HUD designated in separate competitions in 1994 and 1999, these 70 communities are able to share an $11 billion tax-incentive package that encourages entrepreneurs to invest in these communities, open new businesses and expand existing ones, and hire tens of thousands of local residents.

The administrative leaders of each Renewal Community and Empowerment Zone work closely also with government, business, and local community representatives to implement strategic plans and courses of action to improve social and economic conditions throughout the designated areas.

In this website you will find historical information on the Community Renewal Initiative, success stories from businesses in Renewal Communities and Empowerment Zones, and information on laws and regulations that apply to these programs. There are detailed maps of these communities and links to important tax incentive publications, including IRS Publication 954 on Renewal Community and Empowerment Zone tax incentives and IRS Publication 4492 on tax incentives valued at $8.6 billion to businesses in areas devastated in 2005 by Hurricanes Katrina, Rita and Wilma.

This website also provides links to information on resources that different federal agencies provide to these communities through small business assistance, education assistance, health care, youth services and more. Thank you for your interest in HUD’s Community Renewal program. Please call us at (202) 708-6339 or e-mail us at OCRTaxCredit@hud.gov if you need any assistance.

• Introduction to the RC/EZ Initiative
• HUD's Role in the RC/EZ Initiative
• Principles of the RC/EZ Initiative
• RC/EZ Laws and Regulations
• RC/EZ Initiative Timeline