It’s all go in the us ‘gozone’
The
Following Hurricanes Katrina and Rita in 2005, the US Congress passed the Gulf Opportunity Zone Act, or GO Zone Act. The Act provides special tax incentives to spur rebuilding in the hurricane-damaged areas of
The GO Zone Act offers several tax benefits to properties built and placed into service in the GO Zone region after the hurricanes. The incentives are being offered by the government to help bring back life once again to the affected areas and rebuild the economies of these states. The Key provisions of the act are:
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50% bonus depreciation is available to businesses of all sizes for investments in equipment, non-residential real property or residential rental property.
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NOL carryback for qualifying losses extended from 2 years to 5 years.
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Tax-exempt bonds worth about $4.9 billion are available in
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Increased deduction for qualifying tangible personal property for small businesses.
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Employee Retention and work opportunity tax credits available to qualifying employers.
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Portion of demolition and cleanup expenses may be expensed instead of capitalized.
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New markets tax credits increased for qualifying investments in low-income communities.
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Increased qualified rehabilitation credits for historic structures.
Dan Johnson, Managing Director of TheMoveChannel.com, commented: “Infrastructure projects can be highly lucrative at the best of times, but with the added incentives on offer from the
“Normally, the main difficulty is finding a qualifying project for which the contract hasn't already been one by a company with the ear of the local administrators. But with the GoZone, it should be possible for individual investors in buy to let property to benefit from at least some of the incentives.
“Provided you can get mortgage finance on to gear up your investment, the infrastructure improvements, low priced dollar and government incentives could provide a triple whammy to boost investment returns.