FAQ

Frequently Asked Questions

What is PEZ?

Pulaski County Empowerment Zone (PEZ) is one of seven urban areas nationwide to receive the designation from the Department of Housing and Urban Development.

How is it determined?

PEZ is made up of fifteen census tracts in the downtown of Little Rock and North Little and stretching west to the University of Arkansas at Little Rock area that had to meet poverty and population criteria. The PEZ area is a total of 17.2 square miles.

Who can take advantage of the credits?

Do you have to be an EZ business to take advantage of the EZ wage credit? No, your business does not have to be located within the EZ for you to take advantage of the EZ Wage Credit.

However, to take advantage of the Deductions, Bond Financing, Capital Gains and other incentives your business has to be located within the empowerment zone.

What are the PEZ boundaries?

(see map)

What is the definition of an Empowerment Zone Business?

A business qualifies as an Empowerment Zone business if:

• It actively conducts business in an EZ
• Has tangible and intangible property located and used in the active conduct of business in and EZ
• Employs residents of an EZ (a required 35% of its employees)
• And has its employees perform services in an EZ.

The business can be a sole proprietorship, partnership, or corporation for Federal Tax purposes. Some businesses are excluded from qualifying. The business must meet the requirements of being an EZ business continuously for several years, depending upon the incentive.

In general, an Empowerment Zone business is a corporation, partnership or sole proprietorship that , for each taxable year, meets the following tests:

• Except with respect to a sole proprietorship, every trade or business of the entity is actively conducted in an EZ (legally separate entities are not aggregated with related entities for these tests)
• At least 50 percent of the total gross income of the entity is derived from the active conduct of business within an EZ.

Can nonprofit organization benefit from the PEZ?

Tax-exempt organizations, other than certain cooperatives, are ineligible for the credits.

Are there any types of businesses that cannot be Empowerment Zone Businesses?

Yes, The tax laws exclude certain businesses from the definition, including liquor stores, golf courses. Racetracks, gambling facilities.

How do I contact the PEZ?

Contact Eyona Scott Mitchell, Pulaski Empowerment Zone Manager, at 501-375-0121 or via email at emitchell@empowerpulaski.com.