The Gulf Opportunity Zone of 2005 (GO Zone) provides federal and state tax incentives for business development in the areas most affected by Hurricanes Katrina and Rita. There are two distinct benefit programs:
- Bonus Depreciation: Qualifying property located in the GO Zone is eligible for an additional one-time, up-front 50% bonus depreciation. These facilities have to be placed in service on or before December 31, 2010.
- Tax Exempt Bonds: In lieu of the bonus depreciation on investments, most developments qualify for tax exempt bond financing. While interest rates on GO Zone Bonds fluctuate with market conditions, these vehicles have typically saved borrowers between 1.5% and 2.5% per year compared to conventional financing vehicles. The tax benefits are accrued to the holder of the bonds, the interest from which is exempt from state and federal taxes.
Eligibility:
GO Zone Bonds are only available to projects located within the defined impact zones of Hurricanes Katrina and Rita, which includes all of Ascension Parish. |
