President’s FY 2012 Budget Proposal
White House released the Obama Administration’s budget request for Fiscal Year 2012. The
budget proposal lays out a $3.73 trillion spending proposal and claims 1.1 trillion
in spending cuts. The budget calls for
a number of critical policy and fiscal goals by cutting the federal deficit, investing
in education, technology and infrastructure. The
budget also includes an extension of WOTC and the creation of a new “growth zone”
Opportunity Tax Credit (WOTC)
budget proposal includes a one-year extension of WOTC for provisions that expire at
the end of 2011.
“growth zone” Program
budget proposal includes the creation of a new growth zone program, which would designate
14 urban zones and 6 rural zones. The
designated zones would receive special tax treatments for a period of four years (starting
in 2012). The growth zones would allow
two tax incentives for the program.
employment tax credit equal to 20% of up to the first $15,000 in wages paid to an
employee who lives and works in the zone (10% for zone residents who work outside
of the zone).
100% depreciation for property placed in service in the zone for the first year with
a recovery period of 20 years or less.
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