GO Zone Extension Sought By Senators of Mississippi
November 12, 2009
Mississippi State Republican senators Thad Cochran and Roger Wicker, in a bold effort to encourage building growth after hurricane Katrina, have introduced legislation towards that end.
This new bill would allow an extension of the soon to expire Gulf Opportunity Zone bonus depreciation tax by two years. The new expiration date would be December 31, 2011 instead of 2009, which is less than two months away as of this writing.
Senator Wicker, the author of the bill stated in a news release that Louisiana Democratic Senator Mary Landrieu and Republican Senator David Vitter had also signed on from the outset as cosponsors of the new measure.
In 2005 a tax incentive called the GO Zone Act was established that was the equivalent of 50% of the cost of property that qualified for the year it was put in service and was also taxable.
Areas that would benefit from the extended bonus depreciation incentive of the new bill are those in Mississippi and Louisiana, which suffered the most damage from Katrina; including the counties of Hancock, Jackson, Pearl River and Stone of Mississippi.
In Wicker’s news release he stated, “The bonus depreciation incentive has had a substantial impact on Gulf Coast rebuilding by helping fuel private investment in commercial and affordable housing construction.” He added, “Problems with flood maps and other infrastructure delays have prohibited many projects from being able to take advantage of the bonus depreciation incentive.”
Senator Cochran stated that in order for progress to continue to be made, the two-year extension was necessary. Another staunch supporter of the bill, Brian Sanderson, a member of the Gulf cost Business Council referred to the GO Zone as “one of the most important tools” develop by Congress after the destruction of Hurricane Katrina.
Investors and developers have taken advantage of the GO Zone’s depreciation deduction for rebuilding efforts spanning the Gulf Coast. A variety of building structures have been included in the Incentive. Everything from apartment complexes to hotels and factories to retail stores have been erected using this bonus incentive.
Senator Landrieu introduced two bills that are also being cosponsored by Senators Cocnran and Wicker. These would allow GO Zone tax credits to be extended for low-income housing projects and the restoration of historical buildings.
Attention: The GO Zone deductibility period will end 2009
February 9, 2009
Investors all across the United States have expressed interest in GO Zone property and the potential benefits it creates financially, but there is a lot of confusion about when the GO Zone deductibility period will end. Most GO Zone material portrays that the GO Zone will allow for deductions to the end of 2010. This is NOT true; actually, any expenditure on a GO Zone property made in 2010 will not qualify for the GO Zone 50% bonus depreciation deduction! This means all expenditures must be paid for by 31 December 2009. The legislation is pages and pages long, but has 1 line that expresses this approaching deadline. This does not leave investors a lot of time to find a great property that qualifies for the GO Zone 50% bonus depreciation.
The end of 2009 date was confirmed by John (GO Zone Gateway tax adviser), via a direct conversation with the IRS.
As an investor, you should be seeking a cash-flowing investment that is already built, or in construction. We have spoken to over 50 GO Zone ‘developers’ and very few of them actually have their act together, most are just trying to make a quick buck. A great example of this are the significant amount of investors that tried to invest in property in Alabama, but didn’t close on their investment before the end of 2008 and thus will not qualify for the GO Zone benefits (AL benefits ended 2008). We have also spoken to many investors who have been in contract waiting for their homes to close for well over a year, some up to almost 2 years. If this has happened to you then you can be sure you aren’t investing with a team that has your best interest in mind.
The GO Zone Gateway team has taken the hard work out of finding a turn-key, cash- flowing GO Zone property. We have conducted thousands of hours in due diligence and have laid the projects we recommend on a silver platter for investors to review.
You don’t have much time, so make sure you invest wisely and in the right project! Call us now for a free one-on-one consultation. 561-404-7375
Must Mississippi recognize the GO Zone depreciation?
June 24, 2008
Many people want to know if the state of Mississippi must recognize the GO Zone Bonus Depreciation. The answer here, is no. There is no absolute necessity that the tax code of any state must correspond with the federal tax code.
For instance, if you buy a property classified under the GO Zone, and hold it in an LLC, then Read more
Biloxi GO Zone Casinos Rake in the Profits
June 16, 2008
There is a silent growth taking place in the casino industry along the Gulf Coast. Revenues are higher than before the hurricanes, stimulated by construction and relief workers who throng the casinos for entertainment. The lack of bars, movie theaters, clubs and malls which remain closed have also contributed to this spurt in revenues. This growth in the casino industry has hundreds of workers migrating into Biloxi to help keep the wheels running. Read more
The State of Alabama hopes to add two counties to the GO Zone
May 25, 2008
Hurricane recovery projects in two Alabama counties would gain eligibility for tax exempt bonds in a bill that passed the U.S. House this week, if passed this change would immediately benefit a manufacturing plant being built in Colbert County. The bill still needs to pass the Senate though. Read more
GO Zone extension bill makes it through the House
May 22, 2008
The GO Zone extension bill that relates to the Gulf Opportunity or GO Zone Act passed the House on Wednesday (5/21/08). This bill will get rid of the deadline to start construction and qualify for the GO Zone bonus depreciation. The Senate and House must now come to an agreement on the bill. If the extension is approved it will create an additional $1.1 billion in tax incentives for GO Zone rebuilding efforts in the wake of Hurricane Katrina. Read more
Concrete GO Zone Investment Homes For Under $5,000 Out of Pocket!
May 7, 2008
By Skyler Moore
GO Zone Gateway is dedicated to the Real Estate Investor. It is our mission to stay on the cutting edge of all GO Zone news, laws and projects being offered. We have built and closed on every type of construction out there including stick, steel frame, modular and concrete.
We have partnered with a solid concrete developer who understands the importance of quality investment homes at a great price point that enables cash flow. The developer has built over 300 homes in the last 2 years alone, which allows them to know their costs down to the last load of dirt. The price point is $20,000 better than the nearest competition, which give us a large spread of equity to work with, and allows us to keep your out of pocket cost minimal. Read more
GO Zone extension Investors and Builders have through 2010
April 6, 2008
The article below is now outdated, please click here for the latest news about the GO Zone Extension.
JACKSON, MS –
The U.S. Senate approved a measure Friday to extend the Gulf Opportunity Zone Act, giving new hope that lucrative tax incentives to build condos, apartments and businesses will last a few more years.U.S. Sen. Roger Wicker added an amendment to a housing bill, and his addition passed 74-5. U.S. Sen. Thad Cochran co-sponsored the bill. Read more
Hurricane Katrina aid goes toward luxury condos far from the storm zone
February 7, 2008
TUSCALOOSA, Alabama: With large swaths of the Gulf Coast region of the United States still in ruins from Hurricane Katrina, rich federal tax breaks designed to spur rebuilding are flowing hundreds of miles (kilometers) inland to investors who are buying up luxury condominiums. Read more
To important changes to the GO Zone
New GO Zone Projects and incentives
