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Northshore Conifer posted on January 11, 2011 15:29
St. Tammany Economic Development Foundation (STEDF) leaders want to ensure local businesses are aware that Congress has extended the Gulf Opportunity Zone (GO Zone) program through December 31, 2011. This extension applies to both the 50-percent depreciation and GO Zone Bonds.
St. Tammany is one of only seven parishes eligible to continue participating in the accelerated depreciation aspect of the legislation. Companies that are considering new construction projects or renovations, repairs and/or expansions to existing buildings may be eligible if certain qualifications are met. Please check with your financial advisor or tax specialist for details. This federal incentive is available for new construction expenses made by Dec. 31, 2011, for projects that will be placed in service by Jan. 1, 2012.
The GO Zone Bond program was also extended for one year, to the end of 2011. These bonds present a unique opportunity for private business owners and corporations to borrow capital at very favorable tax-exempt rates to acquire, construct, reconstruct or renovate non-residential real property, qualified residential rental projects, and public utility property in the GO Zone.
The federal GO Zone designation was initiated after Hurricane Katrina to encourage a renewal of economic development along the Gulf Coast. STEDF's sister organization, the St. Tammany Parish Development District, is authorized to issue GO Zone bonds.
"We're very excited that Congress has extended the GO Zone program," said Brenda Reine-Bertus, executive director of the St. Tammany Economic Development Foundation, which serves as the administrative arm of the District. "As with each previous extension, however, it has been important that businesses act quickly to take advantage of this program. We encourage local companies to talk with their accountants and tax preparers about the opportunity to accelerate depreciation and maximize tax benefits under this program."
To date, the District has issued GO Zone bonds for eight projects totaling $107.4 million, which created 995 new jobs.
Local businesses in need of additional information are invited to contact STEDF at 985.809.7874 or visit www.stedf.org.
STEDF is the management arm for the St. Tammany Parish Development District (District), a political subdivision of the state of Louisiana which was created in 1992 by Louisiana Revised Statute. The District, whose boundaries are the same as St. Tammany Parish, has the power to tax, incur debt and issue revenue and general obligation bonds. The District is also a conduit issuer for the Gulf Opportunity Zone (GO Zone) Bonds. |
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