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FAQs for Indian Tribal Governments regarding the Empowerment Zone Employment Credit

These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information required to respond to general inquiries. Due to the uniqueness and complexities of Indian law and Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided.



  1. What effect does the Welfare-to-Work Credit have on the Empowerment Zone Employment Credit?
  2. What is the intent of the Empowerment Zone Employment Credit (Section 1396)?
  3. Who can claim the Empowerment Zone Employment Credit?
  4. What is a "qualified zone employee"?
  5. Who is not a qualified zone employee?
  6. How long does an employee have to work before the employer is eligible for the Empowerment Zone Employment Credit?
  7. What are "qualified zone wages"?
  8. How is the Empowerment Zone Employment Credit determined?
  9. What form is used to claim the Empowerment Zone Employment Credit?
  10. What effect does the Empmowerment Zone Employment Credit have on the salary and wage deduction?
  11. What effect does the Empowerment Zone Employment Credit have on the Welfare-to-Work or Work Opportunity Credit?


For questions regarding tax return account matters, tax deposits or filing requirements, please contact our Customer Account Services staff toll-free at
1-877-829-5500.

For questions on any tribal tax matter, please e-mail us.  Be sure to include your name, your phone number and your email address so that we can respond to your question.
Page Last Reviewed or Updated: 18-Nov-2013