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Utilization Of Employment Tax Credits: An Analysis Of The Empowerment Zone Wage Tax Credit, Andrew Hanson
Utilization Of Employment Tax Credits: An Analysis Of The Empowerment Zone Wage Tax Credit, Andrew Hanson
Economics Faculty Research and Publications
This paper provides estimates of utilization for the Empowerment Zone (EZ) wage tax credit, a subsidy claimed by employers who operate in and hire residents of federally designated areas experiencing economic distress. The EZ credit is currently the largest employer-based wage tax credit in the federal tax code in terms of dollars claimed, with almost $250 million claimed in 2002. I show that about 6.4 percent (and at least 3.5 percent) of the working age population was claimed under the EZ wage credit in 1999. In addition, I estimate that 24.2 percent (and at least 13.1 percent) of those employed …