1st Asset in the Black Belt purchased with Individual Development Accounts Program

The Greene/Sumter Enterprise Community Board of Directors and Staff held its 1st Individual Development Accounts Celebration and Ribbon Cutting Ceremony on June  2009.  GSEC is a partner with The Alabama Asset Building Coalition which promotes financial stability to citizens of Alabama. The event was designed to highlight the 1st asset purchased in the Black Belt from the Individual Development Accounts program. Tekeisha Mitcheam, a resident of Greene County, purchased her first home located in downtown Eutaw, Alabama. According to Mitcheam, “Without the Greene/Sumter Enterprise Community and the IDA program it would have taken me years to purchase my first home. Because the IDA program required me to attend classes, I learned about mortgages and the lending process and most importantly, I learned how to budget and save for the future.” This momentous occasion featured the Honorable Senator Bobby Singleton. Senator Singleton offered words of encouragement and enthusiasm for the residents of Greene and Sumter Counties as theycontinue to turn their dreams into realities. Senator Singleton also committed $10,000 to the IDA program which will assist five low-income individuals and families to purchase a home, start or expand a small business, or pursue a higher education degree. Stella Anderson, Executive Director, commented, “The Greene Sumter Enterprise Community is very proud of this program in our communities and hope that we can provide even more opportunities for investors throughout the communities that we serve. Tekeisha Mitcheam has definitely proven that determination and perseverance are the pathways that lead from dreams to realities.” Many of our partners celebrated this grand event with us in honor of Tekeisha Mitcheam and the IDA Program. On behalf of the Greene/Sumter Enterprise Community Board of Directors, we would like to thank everyone that attended and participated with us. Special thanks to the Sumter County Credit Union, a division of the Tuscaloosa VA Federal Credit Union, New Generation Church of Eutaw AL, Bernice Nixon of Sumter County, and the Greene County Commissioners office. Individual Development Accounts (IDA) are offered nationwide through the Assets for Independence (AFI) program, which is a federal grants program administered by the Office of Community Services of the U.S. Department of Health & Human Services. IDAs promote developing a savings pattern and financial stability. IDAs enable participants to acquire a lasting asset—a first-time home, a college education or starting/expanding a small business!  For more information, contact our office at 205.392.1166 or visit our website at www.greenesumterec.org.

Renewal Community Benefits Everyone!
The Community Renewal Act creates four tax incentives that reward businesses for: 1) operating in a designated Renewal Community (RC), 2) employing community residents, and 3) investing in plant and equipment.  Taxpayers investing in such businesses also qualify for RC tax incentives. These incentives apply to qualifying events from January 1, 2002, through December 31, 2009, although some benefits may be realized later if the qualifying investment occurred during this period.

Overview of the Tax Benefits
1.  Employment tax credit is a $1,500 maximum tax credit per employee, available to any business with qualifying employees living and working in the RC.
2.  Commercial revitalization deduction is a vastly accelerated deduction for new commercial building or substantial rehabilitation of an existing building in the RC. It may be available to any business in the RC, but deductions are allocated by a state agency.
3.   Enhanced IRC (Internal Revenue Code) section 179 deduction is an additional $35,000 accelerated deduction for newly acquired qualifying property, available to a qualifying RC business only.
4.  Exclusion of capital gain is an exclusion of qualified gain on the sale of stock or a partnership interest in a qualifying RC business or on the capital gain on the sale of a qualifying RC business asset, subject to a five-year holding period and various criteria regarding acquisition and use. 

For more information, see IRS publication 954 or call our office at 205.392.1166.