EZEC

(2) For an analysis of the empowerment zone employment credit for Tax Year 1996, see Brashares, Edith, "Empowerment Zone Tax Incentive Use: What the 1996 Data Indicate," Statistics of Income Bulletin, Summer 2000, Volume 20, Number 1.

"Substantially all" is not defined in either the law or committee reports of IRC section 1400H or section 1396 (Empowerment Zone Employment Credit), which uses the same language, or in the regulations under section 1396.

As illustrated by the experience of this small business owner, the Empowerment Zone employment credit gives businesses an incentive to retain or hire individuals who both live and work in an EZ.

The Department ruled that a corporation cannot subtract salary and wage expenses disallowed as a deduction in determining Federal taxable income because the taxpayer used a Federal empowerment zone employment credit (EZEC).(53) IRC Sec.

38 business credits include the low-income housing credit and the empowerment zone employment credit. As with the AMT credit, an S corporation computes its regular tax liability and TMT.

The empowerment zone employment credit will be included as part of the general business credit allowable under IRC Sec.