New program to provide funding to businesses

Published 12:00 am Saturday, March 23, 2002

The Southern Alabama Renewal Community recently announced that businesses in certain areas will soon have the ability to receive special tax credits and deductions.

According to Norman Davis, director of the Alabama Department of Economic and Community Affairs, Butler, Conecuh, Dallas, Hale, Lowndes, Marengo, Monroe, Perry and Wilcox counties have been designated as Federal Renewal Community projects. This means that businesses in designated impoverished areas will be enabled to receive federal tax credits and deductions "as an economic stimulus for job creation and development throughout this nine county region."

This program is designed to serve as an incentive for new industry and businesses to move into these areas. Tax incentives offered through the program include: wage credits for employing renewal community residents, an increased Section 179 deduction, commercial revitalization deduction and a zero capital gains rate for renewal community assets.

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Next Wednesday, the Alabama Department of Economic and Community Affairs (ADECA) will host a workshop on the new federal tax benefits that are available to new and existing businesses in the renewal community in Alabama. The workshop will be held in the Selma City Auditorium beginning at 10 a.m.

Rickey McLaney, executive director of the Butler County Commission for Economic Development, said the program is a very good opportunity for businesses to create new jobs and encourage economic development.

"I encourage companies to send someone to Selma or to make sure their accountants and bookkeepers go to the workshop," McLaney said. "Otherwise, I will be available for them to call me or come let me tell them what I know about the program. I will try to learn as much about it as I can."

For more information regarding the workshop or program, contact David Barley or Charles Reynolds of ADECA at (334) 242-5370.