All Empowerment Zone Designations Terminate at End of 2013
(Parker Tax Publishing: October 20, 2013)

All empowerment zone designations remain in effect through the end of 2013 and will terminate on December 31, 2013. IR-2013-78 (9/27/13).

Empowerment zones are certain urban and rural areas where employers and other taxpayers qualify for special tax incentives. In May, the IRS issued Notice 2013-38 to address the relevant provision of the American Taxpayer Relief Act of 2012 that deal with empowerment zones. Notice 2013-38 provided that any nomination for an empowerment zone in effect on December 31, 2009, will have a new termination date of December 31, 2013, unless the governing state or municipality declined the extension in a notification to the IRS.

The deadline for notification was July 29, 2013, and no state or municipality contacted the IRS to decline the extension. Therefore, all empowerment zone designations in effect on December 31, 2009, remain in effect through December 31, 2013, at which time the designation terminates.

Empowerment zones were created by legislation enacted in 1993, and most zones had an expiration date of December 31, 2009. Subsequent legislation extended the expiration dates to December 31, 2011, and then December 31, 2013. The American Taxpayer Relief Act of 2012 did not provide for the extension of the designation for the District of Columbia enterprise zone, and therefore that designation ended on December 31, 2011.

Parker Tax Publishing Staff Writers

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