ITG FAQ #4 Answer-What is a "qualified zone employee"?


A qualified zone employee is any employee who meets both of the following tests:

  • Performs substantially all of the services for the employer within an empowerment zone in the employer's trade or business, and
  • Has his or her principal residence within that empowerment zone while performing these services (anywhere in the District of Columbia for the DC zone). Both full-time and part-time employees may qualify.
Note: This credit, originally set to expire 12/31/2020, was extended through 12/31/2025.

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