Notice 2018-47: Extension of empowerment zone designation

Extension of empowerment zone designation

The IRS today released an advance version of Notice 2018-47 that explains how a state or local government is deemed to extend the termination date designated in an empowerment zone nomination until December 31, 2017.

1000

Related content

Notice 2018-47 [PDF 17 KB] provides a new termination date for empowerment zone designations to December 31, 2017 (unless the nominating entity sends written notification to the IRS by July 3, 2018, that affirmatively declines the December 31, 2017 designated termination date of the empowerment zone nomination). 

If the entity that nominated an empowerment zone does not send written notification, the termination date designated in the empowerment zone nomination will be deemed extended from December 31, 2016, through December 31, 2017. In effect, the empowerment zone designation then ends on December 31, 2017.

Background

The IRS in June 2016 announced that Notice 2016-28 was issued to provide that any nomination for an empowerment zone in effect on December 31, 2014, would have a new termination date of December 31, 2016—unless the governing state or municipality declined the extension in a notification to the IRS. The deadline for notification was May 24, 2016. In June 2016, the IRS reported that no state of municipality contacted the IRS to decline the extension. Read TaxNewsFlash

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal