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Empowerment Zone Designations Automatically Extended Through 2020

July 10, 2020 Priya Comments Off

The termination date for an empowerment zone designation is generally deemed to extend until December 31, 2020. However, the state or local government that nominated the zone may decline the deemed extension.

Empowerment Zone Designation Termination Dates
Empowerment zone designations generally continue until the termination date selected by the government that nominated the zone (the designated termination date), or the termination date established by legislation (the statutory termination date). The statutory termination date has been extended multiple times, with each extension deemed to extend the designated termination date as well.

Most recently, the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (Division Q of P.L. 116-94) extended the statutory termination date to December 31, 2020. Thus, the designated termination dates for all empowerment zones are also deemed to be extended to December 31 2020.

However, a state or local government may decline the extension via a written notification to the IRS by August 10, 2020. The notification must be faxed to Bruce Chang, CC:ITA:B07, at (855) 576-2341.

Notice 2018-47, I.R.B. 2018-21, 621, is obsoleted for tax years beginning after 2017.