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Congress Expands Hurricane Area Tax Relief: CCH Tax Briefing Covers All Aspects of Gulf Opportunity Zone Act
(RIVERWOODS, ILL., December 21, 2005) – With the passage of the Gulf Opportunity Zone Act of 2005, Congress has widened and deepened the tax relief provided earlier to the victims of Hurricane Katrina, according to CCH, a Wolters Kluwer business and a leading provider of tax and accounting information, software and services (tax.cchgroup.com). The new Act expands previous tax breaks to cover victims of hurricanes Rita and Wilma and creates new economic incentives to rebuild, invest and study in the impacted areas. In addition, the Act contains many “technical corrections” to previous legislation. For a CCH Tax Briefing on all aspects of the legislation, go to http://tax.cchgroup.com/tax-briefings/2005-Gulf.pdf .
“The Act provides more tax relief for these natural disasters than any previous natural calamities, but then again, the scope of the destruction is unprecedented, as well,” said Mark Luscombe, JD, CPA and CCH principal federal tax analyst.
A key component of the legislation is the creation of “Gulf Opportunity Zones,” or GO Zones, in which businesses receive special incentives to rebuild and invest. These include 50-percent bonus depreciation related to rebuilding; expanding Code Sec. 179 expensing for investments; allowing a five-year net operating loss (NOL) carryback for investments; enhancing the low-income housing and rehabilitation credits; increasing the New Markets tax credits; and expanding tax-exempt bond limits within the Zone. Several of the key provisions are, however, limited to the GO Zone associated with Hurricane Katrina.
Most of the new law’s tax incentives are available to any business that wants to invest in the GO Zones. Doing business previously in that area is not a prerequisite.
“Local governments are also offering tax rebates and other incentives, so any business that plans to expand its operations should consider locating in a GO Zone,” Luscombe said.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (tax.cchgroup.com) is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx® Office, CCH® Tax Research NetWork™, Accounting Research Manager™ and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Wolters Kluwer is a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2004) of €3.3 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands (www.wolterskluwer.com). Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.
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EDITOR’S NOTE: CCH will issue two new books on the new law (www.cch.com/press/news/2005/20051219t.asp). Copies of CCH’s authoritative resources on the Gulf Opportunity Zone Act of 2005 are available to members of the press on a complimentary basis, including CCH’s Law, Explanation and Analysis of the Hurricane Tax Relief Acts of 2005 and CCH’s Conference Report of the Gulf Opportunity Zone Act of 2005 . Please contact Leslie Bonacum at 847-267-7153 or firstname.lastname@example.org or Neil Allen at 847-267-2179 or email@example.com for copies.