• Eligible amount = 15% of an employee's 1st $10,000 wages
• Employees can be full or part-time
• Must be employed by you for at least 90 days
• Substantially all the work must be completed within the zone
• There is no limit on the number of employees from the zone you can hire
• Take the deduction every year you employ qualifying persons
• Tax benefits available under this program available for 10 years starting 2002
• Federal Tax Form: Use IRS Tax Form 8844, line 1b
• Tax Publication to Consult: IRS Pub 954
• Record Keeping Tips: to verify employee eligibility, the RC Program and IRS recommend you consider the following
  • Have on record for each employee you take a deduction for a copy of "evidence" of the employee's address from a/some documents such as a utility bill, note from a landlord, phone bill, recent post-marked letter, etc.
  • Conduct a routine updating of the file/re-verification process on a systematic basis
  • Additionally, consider asking each employee living in the RC to sign a statement verifying their address
• For more information: Consult your tax professional

HUD WorkPad--RC Wage Credit
PowerPoint Presentation
Additional FAQ