Vitter Applauds Extension Of GO Zone Provisions In Tax Bill
“The GO Zone provisions have been a big help for businesses rebuilding from the damage caused by Hurricanes Katrina and Rita, and they have been critical to the ongoing economic recovery in south Louisiana for the past several years,” said Vitter. “Extending these important incentives will offer continued opportunities for rebuilding that play a key role in creating jobs in south Louisiana.”
The bill included a one-year extension for the placed-in-service deadline to use extra Low Income Housing Tax Credits. These extra credits are key to the financing of vital mixed-income housing developments, and Vitter will continue working to extend this deadline for one more year to ensure that more of these housing units can be completed and that Louisiana can see the full intended benefit of these GO Zone credits.
The bill also extends additional tax-exempt bond authority for rebuilding devastated infrastructure in the GO Zone through the end of 2011. The bonds can be issued by the state of Louisiana and local municipalities to pay for acquisition, construction and renovation of nonresidential real property, qualified low-income residential rental housing, single-family residential housing and public utility property located in the GO Zone.
The bill also extends the 50 percent bonus depreciation of the cost of new property investments for businesses rebuilding in the GO Zone. This additional deduction would continue through 2011 and be an important incentive to making investments in the hardest-hit parishes in the GO Zone.
Additionally, the bill extends through 2011 the increased rehabilitation credit for qualified expenditures in the GO Zone. The 26 percent rehabilitation tax credit benefits many projects involving historic buildings that have sustained hurricane damage.
(Washington, D.C.) – U.S. Senator David Vitter applauded the Senate’s inclusion of extensions of Gulf Opportunity Zone (GO Zone) provisions in the upcoming tax bill. Vitter personally pressed the case for these extensions to key Senate leaders negotiating the package, including Republican Whip Jon Kyl and Finance Committee Ranking Member Charles Grassley, and he also worked with Housing and Urban Development Secretary Shaun Donovan to secure some of these key incentives.
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