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President to Announce Five New “Promise Zones”

According to the Washington Post:

President Obama on Thursday will unveil the first five so-called economic “Promise Zones” — areas where the administration will focus on creating jobs and cutting poverty, a White House official said.

The official said chosen areas are: San Antonio, Texas; Philadelphia; Los Angeles; Southeastern Kentucky; and the Choctaw Nation of Oklahoma.
The White House has said the initiative will focus on reducing crime in high-poverty areas, attracting private investment to replace “distressed” housing with “mixed-income” housing, ensuring that more students graduate from high school and providing tax incentives to stimulate economic growth.

Obama announced the initiative during last year’s State of the Union Address.

The White House Fact Sheet on Promise Zones lists tax incentives as part of the initiative:

Promise Zone tax incentives to stimulate growth and investments in targeted communities. These incentives will includes tax credits for hiring workers and tax write-offs for capital investment within the Zone.

However, since Congress has not passed any legislation yet regarding tax incentives in Promise Zones, any such credits currently remain just a Presidential proposal, as explained in this HUD document:

Promise Zones tax incentives, if enacted: Should Congress enact the Promise Zones tax credit (crafted on the proven model of Empowerment Zones tax credits), private businesses would receive tax incentives for hiring and investing in Promise Zones, to create jobs and attract additional private investments

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