Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
17 April 2000
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The President is pushing his New Markets Agenda; What does that mean to you; We have added a ZERO CAPITAL GAINS ZONE WEB PAGE.
1. The President makes his third trip to distressed communities.
Twice last year the President toured distressed communities promoting his New Markets Agenda, and this week he does it a third time with a stop in East Palo Alto, and then on to an Indian Reservation in New Mexico. On board Air Force One are key executives from many high tech companies, including Bill Gates from Microsoft and some from San Diego companies.
What a day for the trip -- maybe there will be other discussions besides distressed communities.
2. There are 126 Empowerment Zones and Enterprise Communities.
There are 30 Empowerment Zones and 95 Enterprise Communities plus the Washington, D.C. Enterprise Zone with some financial and tax incentives, including nine in California [two in Los Angeles]. Washington, D.C. has the best program with a ZERO CAPITAL GAINS ZONE, wage credits, and $15M Tax Exempt Financing per Enterprise Zone Business program
The Speaker of the House J. Dennis Hastert and President Clinton have agreed to have a by-partisan Distressed Communities Bill on the House Floor in early May 2000, which most likely will include H.R. 815, The American Communities Renewal Act of 1999, and H.R. 2848, The New Markets Initiative. In addition increased market gains roll overs contributions to SSBICs under IRC Section 1044 may be adopted.
How about IRC Section 1045 roll overs for Enterprise Zone Businesses? Could that jump start distressed communities and provide capital for startups?
What is an Enterprise Zone Business under IRC Section 1397B? That will be the key in all upcoming legislation, including ZERO CAPITAL GAINS ZONES. In short having 35% of your employees [full and part time] live in the Empowerment, Enterprise, or Community Renewal Zone, as the case may be, will be the key, or 50% or more Enterprise Zone Businesses as tenants if you own a commercial building and want the benefits. Where the various Zones are and where your employees live will be the top issue.
3. We have added a new Web Page to highlight the concept of ZERO CAPITAL GAINS ZONES and potential locations of Distressed Communities.
One of the tallest buildings in the United States, and the only one with a 160' "BIG JUMP" ride on top, sits inside an Enterprise Community, a.k.a. The Naked City.
Check it out and see our pictures from the top. We passed on the "BIG JUMP" ride but what a view. Will a ZERO CAPITAL GAINS ZONE, and Dot-Com Companies revitalize this distressed neighborhood? We think so. See ZERO CAPITAL GAINS
How about the San Francisco Enterprise Community, or Oakland's? Check out Red Herring [they just broke 500+ pages], they have the answer. Or Bigstep.Com, they are within blocks of being in the Enterprpise Community.
How about Padres 2000 which has an AAA in the Las Vegas Enterprise Community, and are building a $1B Baseball Park/Entertainment/Multimedia District within the San Diego Enterprise Community, including over 2M sq. ft. of high tech buildings. This redevelopment project [30+ blocks], all within the San Diego Enterprise Community, will raise the pole for downtown revitalization, bringing high tech into distressed neighborhoods.
Is the possibility of ZERO CAPITAL GAINS ZONE pushing this project to a bigger and better mix of buildings and tenants? We think so.
Jim Schneider, LL.M.
Taxman86
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