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High Tech Start-Up Company


  • S-Corporation with less than 20 employees
  • Located in an Empowerment Zone
  • 3 employees live in the Empowerment Zone


  • $18,000 in credit over 2 prior years claimed by filing amended returns

This client is a small closely held S-corporation with less than 20 employees. While a company this size would generally not produce large tax credits, this company is located in an Empowerment Zone. Additionally, 3 well paid employees live in the Empowerment Zone, so the employer was able to claim the Empowerment Zone Credit, a federal Location Based Incentive for these 3 employees retroactively for the past 2 years. The credit generated over the two years was $18,000.