Gulf Opportunity Zone

AAA

DEFINITION of 'Gulf Opportunity Zone'

A bundle of special federal income tax credits and deductions available to businesses opened in the Hurricane Katrina Disaster Area after August 27, 2005. The property must meet several further requirements to qualify for the deductions and credits. For example, massage parlors, liquor stores, golf courses, and a few other types of businesses are excluded.

INVESTOPEDIA EXPLAINS 'Gulf Opportunity Zone'

The deduction allows for 50% depreciation and an increased Section 179 expense deduction. It also provides a tax credit for hiring individuals from certain groups and a deduction for certain demolition, clean-up and environmental remediation costs. The purpose of this subsidy is to encourage economic growth in an area that business owners might otherwise find unattractive.

RELATED TERMS
  1. Work Opportunity Tax Credit

    A separate, nonrefundable credit that is part of the general ...
  2. Non-Refundable Tax Credit

    A tax credit that can't reduce the amount of tax owed to less ...
  3. Section 1341 Credit

    A tax credit available for taxpayers who are repaid in a later ...
  4. Tax Credit

    An amount of money that a taxpayer is able to subtract from the ...
  5. Saver's Tax Credit

    A non-refundable tax credit available to lower income individuals ...
  6. Working Tax Credit (WTC)

    A tax credit offered to low-income individuals working in the ...
Related Articles
  1. Tax Credit For Plan Expenses Incurred ...
    Entrepreneurship

    Tax Credit For Plan Expenses Incurred ...

  2. Saver's Tax Credit: A Retirement Savings ...
    Savings

    Saver's Tax Credit: A Retirement Savings ...

  3. 5 Tax Credits You Shouldn't Miss
    Taxes

    5 Tax Credits You Shouldn't Miss

  4. New Retirement Plan Limits For 2011
    Taxes

    New Retirement Plan Limits For 2011

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center