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EZ Manufacturer Uses Its Tax Credits To Help Employees Buy Homes

Baltimore, Maryland, EZ

"We get the tax credit because of our employees, so why shouldn't they share in the benefit?" This is how Stuart Walman, manager of Medo Manufacturing in the Baltimore EZ, explains the reasoning behind his company's homeownership grant program.

With more than 400 employees, Medo Manufacturing, a maker of air fresheners and related products, is one of the largest businesses in Baltimore's EZ. Medo has a strong commitment to hire local residents. As an EZ business that hires zone residents, Medo is entitled to a Federal wage tax credit of up to $3,000 per EZ employee. This commitment has translated into more than $1 million in wage tax credits for the business since 1994 when the Baltimore EZ was designated.

"We have dedicated employees who work hard every day to make our company a success," explained Walman. "We want to give something back to our employees and they deserve it."

What Medo decided to do for its employees was to use savings from EZ wage tax credits to fund a homeownership grant program. Medo awards $2,000 to employees who purchase homes in the EZ.

Medo employees Jan Hoover and Bruce Griffiths were the first to take advantage of the company's new program. Hoover, Griffiths, and future Medo employees who purchase homes in the EZ will receive $1,000 after settlement and another $1,000 one year later.

"Medo is the first company to let us know about a project developed with funds saved by taking advantage of the Empowerment Zone wage tax credit," said Empower Baltimore Management Corporation (EBMC) former President and CEO Diane Bell. "We are excited to partner with a company that has developed a creative way to give a perk to their employees that also is a benefit to the community," she added. EBMC administers the Baltimore EZ program.

Employees can use Medo's $2,000 grant in conjunction with a separate grant of up to$5,000 from EBMC's Housing Venture Fund to cover settlement costs. EBMC has designated$4.7 million of EZ funds to the fund, which provides grants (949 awards as of February 2004) to help low- and moderate-income individuals and families purchase homes in the EZ.

For more information on the programs of the Baltimore EZ, please contact Administrative Consultant Rachel Edds at (410) 783-4400.