What is the incentive for Net Operating Losses?
You can carry back net operating losses (NOLs) incurred by the business with pre-existing operations in the GO Zone for five years, instead of the usual two. This means you can convert your current year operating losses into refunds for taxes previously paid, if it is a qualifying GO Zone loss. [back to top] What is a qualifying GO Zone loss? GO Zone losses include GO Zone casualty losses, moving expenses, temporary housing expenses, depreciation deductions for GO Zone property and repair expenses due to Katrina. Are there any other federal tax benefits? Yes. There’s also the rehabilitation credit, which gives a 26% credit for qualified expenditures for a certified historic structure. It also gives a 13% credit for pre-1936 buildings. Are there any new financing tools provided by the GO Zone? Yes. There are GO Zone Tax Exempt Bonds and the GO Loan. [back to top] What is the Tax Exempt Bond? The tax-exempt bond allows private business owners and corporations to borrow tax-exempt money t
