Business Owners Should Understand the Importance of: The Empowerment Zone, Renewal Community and Enterprise Community Enhancement Act of 2009

In essence this is a bill that would amend the Internal Revenue Code of 1986, to extend and expand the benefits for businesses operating in Empowerment Zones, Enterprise or Renewal Communities.

This particular bill has been proposed in each of the last two sessions of Congress, but never got voted upon. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that did not pass are cleared from the books. Members often reintroduce bills that did not come up for debate under a new number in the next session. In the 110th Congress, this bill was known as HR 2578 and in the 109th Congress, HR 5660. Now, in the 111th Congress, HR 1677 has been referred to the House Committee for Ways and Means and that is where it currently awaits further action.

This bill will allow for the extension of tax credits for those who create jobs and that’s a good thing for our prospective and existing clients and franchisees. In the broader sense, anyone in business should keep a close watch on what goes on at the Capitol. How better to protect and preserve one’s ability to stay in business? That's one of the reasons why I love the IFA so much. The mission of IFA’s Government Relations Department is exactly that; to preserve and enhance the legislative and regulatory climate for the growth of franchising. They do so by providing services and representation to IFA members nationwide, by monitoring legislative and regulatory activity, conducting lobbying and grassroots campaigns, participating in national and local coalitions, creating forums and educational tools for experts in the franchising community, and promoting positive relations between franchisors, franchisees, and elected and appointed government officials and employees. Most business owners don't have the resources required to manage these vital activities without belonging to an organization like IFA.

As for RetroTax, passage of HR 1677 will be good news for existing and future RetroTax clients and franchisees. In essence it would extend the scope and benefit of these Federal wage-based tax credit programs through December 31, 2015.

Also, bills such as this one, are signs that tax credits will continue to evolve in the years to come. Just as the Hearltand Disaster Relief Credit was legislated in 2008, extending benefits to the mid-western states for flood relief and the GO Zone credits (Gulf Opportunity) were legislated following Katrina, look for future legislation to include Work Opportunity Tax Credits for jobs created during during recession, helping to reduce and reverse dependency on unemployment insurance. Green credits too, continue to evolve as conservation and global warming continue to weave their way into the fabric of our lives.

Be sure to return to my blog often, to monitor the public’s opinion of HR 1677, in the tool bar to your right. More importantly, contact your Members of Congress and tell them that you are counting on their support of HR 1677.