OFFICE OF COMMUNITY DEVELOPMENT,
DEPARTMENT OF AGRICULTURE
AUTHORIZATION:
Omnibus Budget Reconciliation Act of 1993, Title XIII,
Public Law 103-66; Taxpayer Relief Act of 1997, Public Law 105-34;
Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act of 1999, Public Law 105-277.
The purpose of this program is to provide for the
establishment of empowerment zones and enterprise communities in rural areas
to stimulate the creation of new jobs, particularly for the disadvantaged and
long-term unemployed, and to promote revitalization of economically distressed
areas.
TYPES OF ASSISTANCE:
Project Grants. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
The USDA Empowerment Zone and Enterprise Community (EZ/EC) program is the
first step in rebuilding communities in America's poverty-stricken rural
communities. It is designed to empower people and communities all across this
Nation by inspiring Americans to work together to improve living conditions in
their communities, and create jobs and opportunity. Under this program the
Federal government has designated 57 rural areas as EZs and ECs. These
communities meet certain poverty and distress criteria and have prepared
creative strategic plans for revitalization. All designations were made in
consultation with the Community Empowerment Board, which the President
established on September 9, 1993. For the purposes of this program, Round I
refers to those EZs and ECs designated in 1994 and Round II refers to those
designated in 1998. Empowerment Zones are eligible for private activity tax
exempt bonding authority for qualifying enterprises and facilities. Bond
issues are subject to State private activity bond caps and special limits on
issue size. Round I Empowerment Zones are eligible for employer wage credits,
with a phase out beginning in year 2005. Empowerment Zones are eligible for
accelerated Section 179 expensing for eligible property. Certain environmental
remediation expenditures for cleaning up sites in enterprise communities may
be deducted in the year incurred by taxpayers, where those expenses would
ordinarily be capitalized and depreciated over time. EZ/ECs are also eligible
for qualified academy zone taxable bonding authority, where the holder
receives a tax credit in an amount equal to a credit rate (set by the Treasury
Department) multiplied by the face amount of the bond. Round II rural zones
can each issue up to $60,000,000 in "new bonds" to Finance Zone
facilities in addition to Round I type tax exempt bonds. The benefits
described above may or may not be all-inclusive. EZ/EC communities benefit
from additional legislated benefits in the future. They receive special
consideration in competition for funding under numerous Federal programs,
including the National Service and Community Policing initiatives. The Federal
government will focus special attention on working cooperatively with
designated enterprise communities to overcome regulatory impediments, to
permit flexible use of existing Federal funds, and to assist these communities
in meeting essential mandates. Round II Empowerment Zones have authority to
issue private activity bonds for qualified enterprises and facilities, which
are not subject to State private activity bond caps, and enjoy a greater
allowance for section 179 expending. Round II Empowerment Zones will not enjoy
the employer wage credits mentioned above. All EC and EZ employers, however,
may use the Work Opportunity Tax Credit, as such credit may be extended.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: USDA is not currently
authorized to grant new designations for the EZ/EC program. After Congress
authorizes a new round of designations, eligibility criteria based on the
statutory requirements for the new round will be published in the Federal
Register.
Beneficiary Eligibility: USDA is not currently
authorized to grant new designations for the EZ/EC program. After Congress
authorizes a new round of designations, eligibility criteria based on the
statutory requirements for the new round will be published in the Federal
Register.
Credentials/Documentation: A Notice Inviting
Applications will be published in the Federal Register.
Pre-application Coordination: None. This program is
excluded from coverage under E.O. 12372.
Application Procedure: A Notice Inviting
Applications, to be published in the Federal Register.
Award Procedure: Round II Designations are
published in the Federal Register and are effective as of the date of
publication.
Deadlines: Published in the Federal Register.
Range of Approval/Disapproval Time: Guidelines
will be published in the Federal Register.
Appeals: None.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: None.
Length and Time Phasing of Assistance: Period of
designation: The designation of an area as an Empowerment Zone or Enterprise
Community shall remain in full effect during the period beginning on the date
of designation and ending on the earliest of: (1) the close of the tenth
calendar year beginning on or after the date of designation; (b) the
termination date designated by the State and local governments in their
application for nomination; or (c) the date the Secretary modifies or revokes
the designation.
POST ASSISTANCE REQUIREMENTS:
Reports: USDA requires semi-annual reports for the
designated EZ/EC communities. These reports will identify the community, local
government and State actions that have been taken in accordance with the
strategic plan. In addition to these reports, such other information relating
to designated empowerment zones and enterprise communities as USDA shall
request from time to time shall be submitted promptly. On the basis of this
information and of on-site reviews, USDA will prepare and issue periodic EZ/EC
reports.
Audits: In accordance with OMB Circular No. A-133
"Audits of States, Local Governments, and Non-Profit Organizations"
as codified by USDA or 7 CFR Chapter XXX, Part 3052, nonfederal entities that
expend $300,0000 or more in a year in Federal awards shall have a single or
program-specific audit conducted for that year.
Records: To be determined.
FINANCIAL INFORMATION:
Account Identification: 12-2065-0-1-452.
Obligations: Round I designated communities were
funded through the Department of Health and Human Services, Title XX (Social
Services) Program. Round I rural EZs received $40,000,000 each, ECs received
approximately $2,947,368. Round II was funded through USDA Rural Development
grant funds for two fiscal years. Round II rural EZs received $2 million for
each of these two years, ECs received $250,000 for each of the two years.
Range and Average of Financial Assistance: From
$500,000 to $40 million. Average: $6,300,000.
7 CFR Part 25 Designation of Empowerment Zones and Enterprise Communities.
Program regulations may be found in 7 CFR Part 25 Designation of Empowerment
Zones and Enterprise Communities.
INFORMATION CONTACTS:
Regional or Local Office: Consult your local
telephone directory for the USDA Rural Development Area Office number. If none
are listed contact the appropriate Rural Development State Office listed in
Appendix IV of the Catalog.
Headquarters Office: USDA, Office of Community
Development, 300 7th Street SW., Reporters Building, Room 701, Washington, DC,
20024, ATTN: Maria Matthews, Deputy Administrator. Telephone: (202) 619-7980.
Internet website: www.ezec.gov.
Web Site Address: http://www.rurdev.usda.gov.
EXAMPLES OF FUNDED PROJECTS:
Descriptions of designated communities and information
on activities in the strategic plans are available on the internet website
above, or upon request, from the Headquarters Office.
