Community Renewal Good Stories - Tucson

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Businesses Empower Employees by Sharing EZ Wage Credit Proceeds

Tucson, Arizona, EZ

Matt Noble, owner of Fraternity Management Group (FMG) in Tucson, Arizona, understands that a key to profitability is a positive employee attitude. That is why, Noble said, "I'm always looking for ways to help my employees succeed on the job and in life." EZ tax incentives have given Noble both the opportunity to support his employees and to reduce his Federal tax burden.

Noble offered to split his EZ employment credit proceeds with any employee willing to move into the Tucson EZ. Anthony Marks took Noble up on his offer and used his share of FMG's savings from the EZ credit to help purchase a house near downtown. "I'm thankful that Matt and the Empowerment Zone helped me find a better place to live and gave me a jump in building a better life," Marks said.

"This designation placed our community among an elite group of cities and created powerful tax incentives for small business owners," said Tucson Mayor Robert Walkup. What makes the EZ so effective, said Walkup, is the way in which businesses are using the program to support their employees. "The credit's design and the city's marketing strategy emphasize reinvestment in our future," Walkup said. "They are an important part of building an effective workforce."

A-1 Mattress, a small five-person shop in South Tucson, is eligible for a $3,000 EZ employment credit for each of the three employees who live in the zone. Owner Bobby Biodo is using the $9,000 credit he receives every year to purchase health insurance for all of his workers.

City leaders hope to see the EZ expand its reach into the community. "The primary tool of the Empowerment Zone is Federal tax and financing incentives, but the Empowerment Zone concept is much more," said Assistant City Manager Karen Thoreson. "It lays out a strategic vision addressing the workforce, economic, and community development needs of Tucson, and it does this by supporting vital revitalization projects, by helping individuals find jobs, and by instilling a sense of civic pride."

When Fiore Iannacone, who has owned the Italian Kitchen restaurant in downtown Tucson for 20 years, found out about the EZ, he filed an amendment to his 2002 tax returns and received $2,100 back because of the program. Iannocone used the additional money to invest in a new downtown restaurant, the Enoteca Pizzeria and Wine Bar, which opened in January 2004. "Because this program has been so beneficial to me, I have hired more employees from the Empowerment Zone and hope to be a part of downtown for a long time to come," he said.

For more information on the programs of the Tucson EZ, contact Empowerment Zone Administrator Gerri Brunson at (520) 243-1900 ext 1945.