[1] The Community Renewal Tax Relief Act of 2000 is intended to improve development in economically distressed areas of the United States.
The law offers "tax incentives for businesses to locate and hire residents in urban and rural areas that have not experienced recent economic expansion.
[2] The bill also created the New Markets Tax Credit Program, which has been renewed several times and is still in effect.
[2] Renewal communities would receive special tax breaks designed to encourage economic growth by generating business investment and job opportunities.
[2] If a community is successful in becoming a designated renewal community, local business "may be entitled to employer wage credits for full-time employees and summer workers, an expanded expense deduction for tangible assets, an accelerated commercial revitalization deduction and a 100% exclusion for capital gains on the sale of certain renewal community business interests or tangible assets.
"[2] The Departments of Housing and Urban Development (HUD) and Agriculture (USDA) have designated RCs and EZs in three competitions since 1994.