The Baltimore Empowerment Zone extends over 6.8 square miles, covering three separate areas of east, west, and south Baltimore, and containing over 50,000 people and 2,000 businesses. The Empowerment Zone area covers 25 census tracts. The neighborhoods that make up the Empowerment Zone include: East Harbor, Historic East Baltimore, Harlem Park / Lafayette Square, Poppleton, Sandtown-Winchester, and Washington Village of Baltimore City. To determine if your business is eligible for the following programs, check the list of addresses included in Empowerment Zones.
Community Development Block Grant Program – Economic Development (CDBG–ED)
This larger program contains a Community Renewal Initiative that provides funds to businesses located within EZs.
Empowerment Zone Incentives
Businesses located in, or who have employees who live in EZs can earn up to $3000 in tax credit per person. Property tax can be earned for property improvements. Additionally, investment in qualified businesses in low-income areas can earn tax credits as well.
Increased Section 179 Deduction
Allows businesses to claim increased Section 170 deduction (up to $20,000 in additional expensing increasing to $35,000 for property acquired after December 2001) if the businesses qualifies as an Enterprise Zone Business or Renewal Community Business.
New Markets Tax Credit
Equity investors in qualified Community Development Entities (CDEs) can obtain a tax credit against Federal taxes of 5 to 6 percent of the amount invested for each of the yeas the investment is held, for up to 7 years of the credit period.
Qualified Zone Academy Bonds (QZABs)
Schools located within Empowerment Zones (or who have 35% students for free or reduced-cost lunch) are eligible to receive bonds at 0-percent interest cost to them to finance programs with private business partnerships.