Community Renewal Good Stories - Northern Louisiana

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Savvy Veterinarian Applies Multiple RC Incentives for Maximum Savings

Northern Louisiana, RC

Dr. Chris Sullivan owns the Sullivan Veterinary Clinic in Winnsboro, part of the Northern Louisiana RC. He is the sole proprietor of a large and small animal practice in this manufacturing and farming community of about 6,000. When Sullivan decided to build a new clinic, he was eligible for the tax advantages available to business owners focused primarily within an RC.

In May 2002 Sullivan sent his accountant to HUD's Community Renewal Implementation Conference in Washington, D.C. At the conference his accountant learned the details on tax incentives, innovative tax incentive marketing techniques, and performance measurement. What he learned allowed Sullivan to save many thousands of dollars on land, construction, and equipment for his new clinic.

The accountant was also able to advise Sullivan on how to take advantage of ongoing wage credits and, since Sullivan plans on keeping the RC business for more than 5 years, how he can avoid capital gains when he decides to sell the business.

During construction of the new clinic, Sullivan applied for an allocation of the RC commercial revitalization deduction to help reduce his construction costs. He also divided the deductions for his equipment purchases between 2002 and 2003 to take full advantage of increased Section 179 expensing. He currently receives a $1,500 RC wage credit annually for each of his seven original employees, since they all live in the RC. Recently he hired four new employees from the RC who are between the ages of 18 and 24. He is able to claim a $2,400 one-time WOTC for each of these new employees.

For more information on the programs of the Northern Louisiana RC, please call President and CEO Tana Trichel, Northeast Louisiana Economic Alliance, at (318) 757-3033.