Qualified zone wages are wages paid or incurred by an employer for services performed by an employee while the employee is a qualified zone employee. Wages are generally defined as those wages subject to the Federal Unemployment Tax Act without regard to the FUTA dollar limit.

Also treated as qualified zone wages are certain training and education expenses paid by the employer on behalf of the qualified zone employee.

Note: The empowerment zone credit has expired for qualified empowerment zone wages paid or incurred after 2017 and hasn't been extended.

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