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.
BREAKING DOWN '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.