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.
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.
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
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