Op-Ed: Empower Our Communities

Op-Ed

Dear Friends,

As a member of Congress from a rural district, I am fully aware of the difficulties that our municipalities face in promoting and securing economic growth. For this reason, I have introduced and supported legislation over my tenure in Congress that encourages economic development in the most troubled areas throughout the country.

I would like to call your attention to a recent development pertaining to tax incentives for distressed communities, including the empowerment zones and renewal communities programs which are set to expire at the end of this calendar year. Today, the Chairman of the House Ways and Means Committee, along with members of the Subcommittee on Select Revenue Measures, and several of my colleagues from other committees, came together to discuss extending and potentially making permanent the tax incentives that help foster development in struggling communities.

These tax incentives are available to businesses and individuals in areas that meet certain criteria, including pervasive poverty, high unemployment and general economic distresses. The 40 communities that are currently classified as either empowerment zones or renewal communities are those that are plagued with specific poverty rates, population and geographic size limitations. There are four such communities in Louisiana, including the Northern Renewal Community, the Central Renewal Community, the Ouachita Renewal Community, and the Jefferson-New Orleans Renewal Community.

It is evident that these tax incentives are significantly utilized throughout Louisiana to help spur economic growth. Businesses see the tax incentives as a merit, and according to the panel members from a recent hearing, strongly consider the empowerment zones and renewal community zones for business sites based on the tax breaks.

As President John F. Kennedy once said, "We will neglect our cities to our peril, for in neglecting them we neglect the nation."

Now is a critical time for these tax breaks to be extended-- if not made permanent. Our current economic climate is unpredictable at best and while I hope for a speedy exit from the current recession, I also want to promote practices that keep businesses flourishing even in hard times. Making the empowerment and renewal tax incentives available and flexible are tools we need to employ in order to foster recovery and development.

I proudly join several of my colleagues in aiding the development of cities and towns so that our nation can continue to thrive.

Sincerely,
Rodney Alexander
Rodney Alexander

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