Fillable Form 8844 - Empowerment Zone Employment Credit

Form 8844 (2012)

Page

General Instructions

See Qualified Employees below for a

• Oklahoma City, OK

list of persons who are not qualified

• Philadelphia, PA/Camden, NJ

Section references are to the Internal

employees.

• Columbia/Sumter, SC

Revenue Code.

Qualified Employees

• Knoxville, TN

Future Developments

Any person may be a qualified employee

• El Paso, TX

For the latest information about

except the following.

developments related to Form 8844 and

• San Antonio, TX

• Any relative of the employer described

its instructions, such as legislation

in sections 152(d)(2)(A) through

• Norfolk/Portsmouth, VA

enacted after this form and instructions

152(d)(2)(G).

• Huntington, WV/Ironton, OH

were published, go to

• A dependent of the employer

form8844.

Washington, DC. Under section 1400,

described in section 152(d)(2)(H).

parts of Washington, DC, are treated as

What's New

• If the employer is a corporation, any

an empowerment zone. For details, use

individual who bears any of the

the RC/EZ/EC Address Locator at

The empowerment zone designation has

relationships described in sections

or see Notice

been extended through 2013. Therefore,

152(d)(2)(A) through 152(d)(2)(G), or is a

98-57, on page 9 of Internal Revenue

the empowerment zone employment

dependent, as described in section

Bulletin 1998-47 at

credit is available for 2012 and 2013.

152(d)(2)(H), of an individual who owns

pub/irs-irbs/irb98-47.pdf.

Purpose of Form

(or is considered to own under section

Rural areas. Parts of the following rural

267(c)) more than 50% in value of the

areas are empowerment zones. You can

Use Form 8844 to claim the

outstanding stock of the corporation.

find out if your business or an

empowerment zone employment credit.

• If the employer is an entity other than a

employee’s residence is located within a

For tax years that include December 31,

corporation, any individual who owns

rural empowerment zone by using the

2012, the credit is 20% of the

directly or indirectly more than 50% of

RC/EZ/EC Address Locator at

employer's qualified wages (up to

the capital and profits interest, including

or by calling

$15,000) paid or incurred during

constructive ownership, in the entity.

1-800-998-9999.

calendar year 2012 on behalf of qualified

empowerment zone employees.

• If the employer is an estate or trust,

• Desert Communities, CA (part of

any individual who is a grantor,

Riverside County)

The credit is a component of the

beneficiary, or fiduciary of the estate or

general business credit, and a special

• Southwest Georgia United, GA (part of

trust (or a dependent, as described in

tax liability limit applies. The allowable

Crisp County and all of Dooly County)

section 152(d)(2)(H), of such an

credit is figured in Part II of Form 3800,

• Southernmost Illinois Delta, IL (parts of

individual), or any individual who is a

General Business Credit.

Alexander and Johnson Counties and all

relative, as described in sections

of Pulaski County)

Empowerment Zones

152(d)(2)(A) through 152(d)(2)(G), of the

• Kentucky Highlands, KY (part of Wayne

grantor, beneficiary, or fiduciary of the

Urban areas. Parts of the following

County and all of Clinton and Jackson

estate or trust.

urban areas are empowerment zones.

Counties)

• Any person who owns (or is considered

You can find out if your business or an

• Aroostook County, ME (part of

to own under section 318) more than 5%

employee’s residence is located within

Aroostook County)

of the outstanding or voting stock of the

an urban empowerment zone by using

employer, or if not a corporate employer,

• Mid-Delta, MS (parts of Bolivar,

the RC/EZ/EC Address Locator at

more than 5% of the capital or profits

Holmes, Humphreys, Leflore, Sunflower,

or by calling

interest in the employer.

and Washington Counties)

1-800-998-9999.

• Griggs-Steele, ND (part of Griggs

• Any individual employed by the

• Pulaski County, AR

County and all of Steele County)

employer for less than 90 days. For

• Tucson, AZ

exceptions, see Early termination of

• Oglala Sioux Tribe, SD (parts of

• Fresno, CA

employee, later.

Jackson and Bennett Counties and all of

• Los Angeles, CA (city and county)

Shannon County)

• Any individual employed by the

employer at any private or commercial

• Santa Ana, CA

• Middle Rio Grande FUTURO

golf course, country club, massage

Communities, TX (parts of Dimmit,

• New Haven, CT

parlor, hot tub facility, suntan facility,

Maverick, Uvalde, and Zavala Counties)

• Jacksonville, FL

racetrack or other facility used for

• Rio Grande Valley, TX (parts of

• Miami/Dade County, FL

gambling, or any store the principal

Cameron, Hidalgo, Starr, and Willacy

business of which is the sale of alcoholic

• Chicago, IL

Counties)

beverages for consumption off premises.

• Gary/Hammond/East Chicago, IN

Qualified empowerment zone

• Any individual employed by the

• Boston, MA

employee. A qualified empowerment

employer in a trade or business of which

• Baltimore, MD

zone employee is any employee

the principal activity is farming (see Note

(full-time or part-time) of the employer

• Detroit, MI

below), but only if at the close of the tax

who:

• Minneapolis, MN

year the sum of the following amounts

• Performs substantially all of the

exceeds $500,000.

• St. Louis, MO/East St. Louis, IL

services for that employer within an

1. The larger of the unadjusted bases

• Cumberland County, NJ

empowerment zone in the employer’s

or fair market value of the farm assets

• New York, NY

trade or business and

owned by the employer.

• Syracuse, NY

• Has his or her principal residence

2. The value of the farm assets leased

within that empowerment zone while

• Yonkers, NY

by the employer.

performing those services (employees

• Cincinnati, OH

who work in the Washington, DC,

• Cleveland, OH

empowerment zone may live anywhere

• Columbus, OH

in the District of Columbia).

Form 8844 - Empowerment Zone Employment Credit - 2012 Page 2

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