Page 34 - IRS Business Tax Credits Guide

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Instructions for Form 8844 Department of the Treasury
Internal Revenue Service
(Rev. December 2021)
For use with Form 8844 (Rev. March 2020)
Empowerment Zone Employment Credit
Section references are to the Internal Revenue Code • You are an estate or trust and the source credit can be
unless otherwise noted. allocated to beneficiaries. For more details, see the
Future Developments instructions for Form 1041, Schedule K-1, box 13, code K.
• You are a cooperative and the source credit can or
For the latest information about developments related to must be allocated to patrons. For more details, see the
Form 8844 and its instructions, such as legislation instructions for Form 1120-C, Schedule J, line 5c.
enacted after they were published, go to IRS.gov/ Which Revision To Use
Form8844.
What's New Use the March 2020 revision of Form 8844 for tax years
beginning in 2021 or later, until a later revision is issued.
Credit extension. The credit is extended to December Use this December 2021 revision of the instructions for
31, 2025. The Taxpayer Certainty and Disaster Tax Relief tax years beginning in 2021 or later, until a later revision is
Act of 2020 permitted the empowerment zone issued. Use prior revisions of the form and instructions for
designations to be extended through 2025. On May 26, earlier tax years. All revisions are available at IRS.gov/
2021, all empowerment zone designations were extended Form8844.
from December 31, 2020, to December 31, 2025, in Empowerment Zones
accordance with the automatic procedure in Rev. Proc.
2021-18 for a state or local government in which an Urban areas. Parts of the following urban areas were
empowerment zone is located to extend the empowerment zones.
empowerment zone designation. • Pulaski County, AR
Coronavirus-related employee retention credit. You • Tucson, AZ
• Fresno, CA
may claim an employee retention credit on an • Los Angeles, CA (city and county)
employment tax return such as Form 941, Employer’s • Santa Ana, CA
QUARTERLY Federal Tax Return. Certain wages used to • New Haven, CT
figure these employment credits can’t also be used to • Jacksonville, FL
figure a credit on Form 8844. For more information, see • Miami/Dade County, FL
Wages, later. • Chicago, IL
Disaster-related employee retention credit. You may • Gary/Hammond/East Chicago, IN
claim a 2020 qualified disaster retention credit on a Form • Boston, MA
5884-A, Employee Retention Credit for Employers • Baltimore, MD
Affected by Qualified Disasters. Certain wages used to • Detroit, MI
figure that disaster-related employee retention credit can’t • Minneapolis, MN
also be used to figure a credit on Form 8844. See Wages, • St. Louis, MO/East St. Louis, IL
later. • Cumberland County, NJ

General Instructions • New York, NY
• Syracuse, NY
Purpose of Form • Yonkers, NY
• Cincinnati, OH
Use Form 8844 (Rev. March 2020) to claim the • Cleveland, OH
empowerment zone employment credit. For the tax year, • Columbus, OH
the credit is 20% of the employer's qualified zone wages • Oklahoma City, OK
(up to $15,000) paid or incurred during the calendar year • Philadelphia, PA/Camden, NJ
for services performed by an employee while the • Columbia/Sumter, SC
employee is a qualified zone employee. • Knoxville, TN
• El Paso, TX
Partnerships and S corporations must file this form to • San Antonio, TX
claim the credit. All others are generally not required to • Norfolk/Portsmouth, VA
complete or file this form if their only source for this credit • Huntington, WV/Ironton, OH
is a partnership, S corporation, estate, trust, or Note. The treatment of parts of Washington, DC as an
cooperative. Instead, they can report this credit directly on empowerment zone ended at the end of 2011.
Form 3800, General Business Credit. The following Rural areas. Part of the following rural areas were
exceptions apply. empowerment zones.

Dec 08, 2021 Cat. No. 66393K